Time to Sell Zcash ($ZEC)? This Trader Says Profit-Taking Is Smart

Zcash Rally and Analyst Caution

Zcash has been one of the strongest performers in the entire crypto market this month, and the rally has now pushed the price back above $700 after an explosive multi-week climb. However, not everyone believes the move should be chased here. Well-known analyst Altcoin Sherpa shared a cautionary take, stating he personally sold his position and is fully out for now. His message was simple:

$ZEC — would be selling here personally or at least taking profit, I did. All out. Great coin but would see how price develops from here before hopping back in.

His chart provides several reasons why he believes the current level is a smart zone for locking in gains.

Analysis of Altcoin Sherpa's ZEC Chart

The chart shared by Altcoin Sherpa is a clean Fibonacci structure mapped on the 4-hour timeframe. The key resistance level is identified at the 0.0 fib line near $749–$750, which represents the previous high from earlier in the month. The Zcash price is currently pressing directly into this zone, which has historically acted as a strong rejection point.

Below this resistance, Sherpa highlights several important levels:

•
0.236 fib at $580 – Price reclaimed it aggressively during the breakout.
•
0.382 fib at $476 – A major support during the last pullback.
•
0.5 fib at $392 – The midpoint of the entire rally and a key reclaim level.
•
0.618 fib at $307 – Remains the deeper support if the market resets.

ZEC Fibonacci Chart Analysis — **Source:** X/@AltcoinSherpa

The structure indicates that ZEC’s entire move has been extremely vertical. The candles from $480 to $720 formed almost uninterrupted, suggesting that liquidity in this range is thin. When a move occurs this quickly, there is typically little structural support underneath, a phenomenon traders often refer to as “air.”

Volume also spiked heavily during the breakout and has since cooled. This often signals exhaustion, especially when the chart pushes directly into a previous high without forming a higher-low structure first.

Sherpa also included a projection sketch suggesting that even if the ZEC price eventually breaks above $750, it may first pull back into the $580–$620 range before resuming an uptrend. His advice reflects this scenario.

Evaluating the $700 Sell Decision

There are arguments supporting both sides of the decision to sell at $700.

Reasons to Take Profit

ZEC has experienced a significant increase of several hundred percent in just a few weeks. The chart is approaching a major resistance zone. RSI on multiple timeframes indicates overheated conditions. Most importantly, the rally has been parabolic without meaningful consolidation.

Reasons to Hold

ZEC possesses substantial narrative momentum. Arthur Hayes recently stated publicly that “ZEC > XRP” and increased his holdings. Privacy is currently the dominant narrative of Q4. Furthermore, once ZEC breaks $750, the chart opens a clear path toward $820–$900.

Both perspectives can be valid simultaneously. The current price zone is objectively a high-risk area to buy and a logical zone to take profits, yet the broader trend remains bullish.

The most prudent interpretation is that ZEC likely requires a cooldown. A pullback into the $580–$620 zone would serve to reset indicators, allow traders to re-enter, and build a stronger base before aiming for new highs. For now, Sherpa’s caution aligns with standard risk management practices following an extreme run.