Zcash price has stabilized following a sharp decline in early December, with the cryptocurrency trading near a technical support region. The privacy-focused cryptocurrency is trading around $363.02 with a 24-hour gain of roughly 10.2%, reflecting a strong short-term rebound after recent weakness.
The digital asset experienced a deep retracement from November highs, forming a rounded bottom structure after a sequence of lower lows, according to chart data. Trading volume has increased during intraday recoveries, indicating potential demand returning to the market.
The December decline extended into a lower price area before buyers entered the market, creating a V-shaped rebound. Zcash (ZEC) price reaction aligns with the 0.618 Fibonacci retracement level, a technical indicator frequently monitored by traders in swing-trading setups.
Zcash Tests Key Support Zone
Cryptocurrency analyst Altcoin Sherpa stated that the current structure presents an opportunity for swing traders seeking a mid-term bounce. The analyst highlighted the confluence between the recent retracement and the 0.618 Fibonacci level, noting that this zone attracts technical traders looking for oversold reversals.
Sherpa does not anticipate a return to all-time highs but stated the current pullback may generate a relief rally. Based on past volatility and the depth of the correction, the analyst views a rebound as realistic if the market holds above the 0.618 region. Sherpa indicated that invalidation should occur just below this Fibonacci level, as losing it could lead to further downside.
Recent price action displays several characteristics of swing-low structures, including a steep drop into a major Fibonacci level, a sharp intraday reversal with strengthening volume, a shift from selling pressure to gradual accumulation, and higher lows forming on lower timeframes, according to technical analysis.
Momentum shifted once the price reclaimed a mid-range level, followed by a steady advance toward the current recovery zone. This suggests selling pressure may be diminishing, providing room for a technical bounce, with primary resistance at higher previous breakdown points.
Zcash currently trades in a technical region considered favorable for bounce traders. With a defined invalidation point and an established Fibonacci confluence, the market structure supports the possibility of a relief rally, particularly if broader altcoin sentiment continues improving alongside Bitcoin’s recent recovery, according to market observers.
Sherpa’s analysis focuses on a disciplined swing trading approach rather than long-term bullish positioning. If strength is maintained above the 0.618 Fibonacci region, the probability of a move toward higher mid-range levels increases, according to the analyst.