Zcash Hits Key Rejection After 40% Rally: Is a Deeper Pullback Next?

• Zcash hits key resistance after 40% rally, signaling traders to watch the next move closely.
• $270 support aligns with 200-day SMA, crucial for confirming a pullback or continued rally.
• Grayscale highlights Zcash’s ability to combine privacy features with regulatory compliance effectively.

Zcash has encountered resistance at a critical overhead level following a sharp 40% rally from recent lows. 

At press time, the privacy-focused crypto trades at $284.20, down 7.91% in the past 24 hours. However, the token still holds a 21.86% gain over the last seven days, according to CoinGecko data.

Crypto analyst Ardi highlighted the rejection in a recent post, noting that ZEC hit the anticipated resistance zone right on schedule. 

The analyst emphasized that $270 remains the decisive level for the chart’s future direction. Trading volume has surged to $352.68 million in the last 24 hours, reflecting heightened market activity.

Critical Support Level at $270 Could Determine Next Move

Ardi’s analysis points to the 200-day simple moving average near $270 as the key battleground. A loss of this support would confirm a macro lower high pattern. This technical breakdown could trigger a retest of lower liquidity zones.

The analyst maintains that the chart remains viable as long as ZEC holds above $270. 

A break below this threshold would shift the market structure bearish. Traders now watch this level closely for signs of either consolidation or further decline.

Breakout Above Descending Trendline Remains Possible

Despite the recent rejection, bulls still have a path forward. Ardi outlined a two-level confirmation setup that requires breaking the descending trendline. 

A successful breach and flip of the overhead resistance could reignite upward momentum.

The analyst called for patience until clearer signals emerge. The current price action suggests neither bulls nor bears have gained full control. ZEC must prove it can reclaim higher levels before the next major move materializes.

Grayscale Executive Highlights Zcash Privacy Features

Institutional interest in Zcash received a boost at Consensus Hong Kong. Grayscale’s Chief Legal Officer Craig Salm praised the cryptocurrency’s ability to balance privacy with compliance. The executive specifically mentioned Zcash’s zk-SNARK technology as a model for the industry.

Another analyst, KalababaS, identified $320 as the next major resistance level on the daily chart. 

A clean breakout above this zone could push prices toward $550, according to the technical outlook. The analyst also marked $200 as a strong accumulation zone for long-term positioning.

Zcash’s NU5 upgrade in 2022 enhanced its privacy protocol through improved zk-SNARK implementation. This technological foundation continues to differentiate ZEC in the crypto market. 

The recent Grayscale comments have fueled speculation about potential institutional products involving privacy coins. Hence, the coming days will reveal whether Zcash can defend its key support or faces a deeper correction.

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