Foreign media analysis suggests that Zcash has recently seen a rapid strengthening, with its price rising from around $800 a few trading days ago to near $1,250, with a single round of increase reaching approximately 50%. However, following this sharp rise, the market has begun to pay attention to the pullback pressure caused by slowing momentum and insufficient support.
RSI fails to reach new highs in tandem with rising prices
The article points out that ZEC has clearly surpassed its August highs, rising from above $880 to over $1,200, but the Relative Strength Index RSI has not concurrently reached a higher level. During the previous upward trend in August, RSI reached a higher peak, while the current indicator is roughly around 74.
This means that while the price continues to rise, the momentum has not increased accordingly, creating a common bearish divergence signal. Foreign media believes that such divergences are more noteworthy in markets with nearly vertical upward movements, but it does not necessarily mean that the upward trend will end immediately.
There is a significant gap between the price and the moving average.
In addition to the divergence in momentum, another signal mentioned is the significant widening of the gap between the price and the main moving averages. According to the data in the text, even after the latest round of decline, ZEC is still about 33% higher than the 20-day moving average, which is roughly around $847.
At the same time, the 50-day moving average is around $650, while the longer-term moving averages are closer to the $614 and $512 ranges. The article suggests that this indicates a significant technical gap below the current price level, and if profit-taking accelerates, there is a lack of sufficiently dense support areas in the vicinity.
The market is focusing on several key ranges.
It is mentioned in the text that the range of $1,040 to $1,080 is considered the initial area to observe for short-term trends, which corresponds to the price band after the previous breakthrough. If this range can be maintained, ZEC may first enter a consolidation phase before attempting to challenge the $1,200 to $1,250 range.
If it falls below the aforementioned range, around $950 will become the next level of attention. Looking further down, the $800 to $850 area corresponds to the previous consolidation range and is also closer to the 20-day moving average, which has been on a rapid upward trend.
Overall, the article suggests that ZEC is still in a strong upward trend, but the pace of this upward movement has changed. As RSI begins to diverge and the price significantly exceeds the trend average, if it is to maintain its strength going forward, the market will need to see more sustained buying support.
