ZCash (ZEC) Price Jumps 8%, Recovery or Dead Cat Bounce?

After a 50% crash from its peak of $700 in mid-November, privacy coin ZCash ZEC $360.3 24h volatility: 7.5% Market cap: $5.92 B Vol. 24h: $1.38 B shows signs of recovery with 9% gains in the last 24 hours. In a relief to investors, ZEC price is now trading at $364. However, market experts remain divided on whether this is a sustained recovery or a dead cat bounce.

ZCash (ZEC) Price Bounces Back, but Sellers Pile Up

After facing a massive crash, ZCash (ZEC) price is showing signs of a bounce back, gaining 9%. However, today’s upside comes with a 10% drop in daily trading volumes, to $1.4 billion. This highlights a weakness for the bullish momentum to continue

Crypto analyst Ardi reported increasing whale activity in Zcash (ZEC), noting a positive delta of +1.06 as large holders attempt to trigger a price rebound. However, he highlighted significant sell pressure at the $380 resistance level. Ardi noted that the sell volume reached 18.7 million, nearly triple the 6.1 million buy volume recorded at the same zone.

ZCash price rally and sell volume | Source: TradingView

Ardi said the imbalance indicates heavy distribution, with sellers using available liquidity to offload positions. He added that unless ZEC can reclaim the $380 level, current whale bids risk becoming “exit liquidity” for bearish participants.

Ardi also stated that if the bulls manage to take out $380, it would trigger a short squeeze straight to $420 levels. However, if they face rejection here, bears could take the ZCash price in the $250–$290 range.

ZEC Showing Swing Trade Setup, Says Analyst

Crypto analyst Altcoin Sherpa said the ZCash price is presenting a potential swing-long opportunity. Sherpa noted that the price has retraced to the 0.618 Fibonacci level, a zone he views as strong support. He added that while a return to all-time highs appears unlikely, the setup could offer a 20–40% upside on a rebound.

ZEC swing trade opportunity | Source: Altcoin Sherpa

Sherpa cautioned that traders should place a stop-loss below the 0.618 level to manage downside risk. 

During its spectacular rally in November, ZCash also attracted strong institutional interest. Big players like Nasdaq-listed Reliance Global and Winklevoss-backed Cypherpunk Technologies announced their ZEC treasury plans. 

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