Zcash price stalls after breakout above $600, bearish crossover hints at downside risk to $400

Zcash price lost momentum on Monday after failing to sustain its explosive rally above the $600 mark, raising concerns that the token could face a deeper pullback toward the $400 support region amid growing profit-taking pressure.

According to data from crypto.news, Zcash (ZEC) price traded around $552 at press time on May 12 after briefly surging above $620 earlier in the session. Despite the recent pullback, the token still remains one of the strongest-performing cryptocurrencies over the past several weeks following its parabolic rally from below $250 in April.

The latest rally was largely driven by a confirmed breakout from a large cup-and-handle pattern visible on the daily chart. The bullish continuation setup had been forming over several months before ZEC finally broke above the neckline resistance near the $400 region earlier this month.

Following the breakout, Zcash quickly completed its measured move target near the $620 area, where strong selling pressure has now started emerging as traders lock in profits after the sharp rally.

The token also benefited from growing interest in privacy-focused cryptocurrencies as investors increasingly rotated into assets offering stronger transaction confidentiality amid rising regulatory scrutiny across the broader crypto sector.

At the same time, increasing usage of Zcash’s shielded pools has continued to reduce actively circulating supply, which amplified upside volatility during the breakout phase as buying demand accelerated.

However, momentum now appears to be cooling after the rapid vertical move higher over recent sessions.

On the daily chart, ZEC recently completed the projected upside target derived from the cup-and-handle breakout structure after rallying from the neckline near $400 toward the measured resistance area around $620.

ZEC has since started consolidating below the recent highs while sellers aggressively defend the upper resistance zone.

Momentum indicators are also beginning to show early warning signs of exhaustion. The MACD remains in bullish territory, but the gap between the MACD and signal lines has started narrowing considerably, suggesting a bearish crossover may soon form if upward momentum continues fading.

Meanwhile, the RSI recently surged above 74, briefly pushing ZEC into overbought territory before starting to trend lower. Such conditions often signal that profit-taking pressure may increase after extended rallies.

If bearish momentum strengthens further, Zcash could retest the key breakout support near the $400 region, which now acts as the most important level bulls need to defend to preserve the broader bullish structure.

On the upside, bulls would need to reclaim the $600–$620 resistance zone to invalidate the developing bearish setup and potentially reopen the path toward higher resistance levels not seen since late 2025.