Zcash’s Wild Ride: Will It Crash or Soar? 🤑🚀

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Darling, Zcash (ZEC) has been the belle of the ball, waltzing through October with a staggering 400% surge and a 44.2% pirouette this week. Even the past 24 hours added a cheeky 6.6%, leaving us all rather breathless. But, my dear, all this frolicking can’t last forever, can it? 🕺💸

The momentum indicators are raising their eyebrows, hinting at a pullback, even as Zcash struts its stuff in a bullish ensemble.

Pullback Risks Grow as Price Outpaces Momentum

Between October 11 and October 29, Zcash’s price was making higher highs, while the Relative Strength Index (RSI) was having a little sulk, making lower highs. RSI, my pet, is that fussy momentum indicator that measures buying versus selling strength. When prices rise and RSI falls, it’s a bearish divergence, darling-a sign that momentum isn’t quite keeping up with the drama. 🧐📉

This divergence, my dear, has popped up during Zcash’s 400% monthly extravaganza, suggesting the surge itself is now driving RSI into a tizzy. In simpler terms, the price has dashed off too far, too fast, and RSI is left puffing behind. That imbalance, my love, usually calls for a little cooldown. 🥵❄️

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Zcash Price Chart

Note, my darling: While this bearish divergence on the daily chart often whispers of a trend reversal, ZEC’s recent history shows a rather impressive price stamina. That pluck might just limit the pullback risk, if and when Zcash decides to take a bow. 🎭💪

Notably, Zcash is still riding the wave of its flag-breakout momentum, and the broader rally seems to be holding its champagne flute aloft. 🥂

At the same time, the Chaikin Money Flow (CMF) – that snooty indicator tracking big money’s comings and goings – has been trending down in recent sessions. It’s now hovering near zero, darling, meaning the bigwigs might be cashing in their chips instead of doubling down. 🤑🤔

Chaikin Money Flow Chart

For Zcash to regain its zest, CMF must perk up, and RSI should sashay past 75. RSI above 75 alongside rising prices will put momentum and price back in sync, at least for a little while. And that, my pet, could send the pullback bias packing. 💃🔄

Long Liquidations Add to the Pullback Risk

ZEC’s liquidation map from Bybit, darling, shows how heavily the market is tilted toward long positions. Over $20.8 million in long leverage is stacked against a mere $10.7 million in shorts. This means most traders are still betting on the upside, my dear-a rather risky game of musical chairs. 🎲💺

Such positioning raises the long squeeze risk-a sharp move down that forces overleveraged longs to close positions, sending prices tumbling further. Even a tiny drop could trigger this, especially with Zcash’s history of dramatic volatility. 🌀⚠️

Liquidation Map

The biggest liquidation clusters sit between $308 and $295, making them high-risk zones if selling pressure builds. Given that the ZEC price responds to derivatives like a diva to criticism, the pullback risk remains unless leverage cools its heels. 🧊❄️

Bullish Zcash Price Structure Holds, But Not Without Risks

Despite these short-term warning signs, Zcash’s technical structure remains bullish, darling. On the 12-hour chart, ZEC trades inside an ascending channel, a pattern that usually leads to upward breakouts. 🌟📈

The upper trendline, though, is a bit of a wallflower-with only two touchpoints, meaning a move above it could be explosive if bulls retake control. The key level to watch is $365, which has rejected every advance since October 27. 🛑🔍

If ZEC breaks above it, $382 and $400 become immediate targets, with $400 acting as a strong psychological barrier. A close above $400 could open the door to $456 and even $548, based on Fibonacci extensions. 🚪📏

Bullish Price Structure

On the downside, $308 remains critical support. A sustained fall below it could send ZEC toward $267 or $226, turning the current pattern from bullish to corrective. The break under $308 would also trigger long liquidations, as mentioned earlier. That could even break the bullish channel structure and push the Zcash price towards $267 or lower. 🌀⬇️

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2025-10-30 18:31