Zcash Price at Risk as Bullish Trend Holds Amid Overbought Momentum

Zcash (ZEC) price has recovered from its mid-week drop and is currently trading near $807 after briefly approaching $880. The token's price movement is being closely watched, as it broke out of a prolonged consolidation between approximately $480 and $520 in mid-August.

Despite the recent rally, Zcash remains in an overbought territory, with its daily RSI standing at 72.29. This has raised concerns about another correction, especially given the long-term bearish divergence on the two-week chart.

The proposed conversion of the Grayscale Zcash Trust into a spot exchange-traded fund (ETF) on NYSE Arca and the upcoming Network Upgrade 7 governance process are also contributing to market interest in ZEC. The potential for institutional products and network developments could support the token's price, but the overbought momentum and weak capital flows remain concerns.

The three-day liquidation heatmap identifies a heavy concentration of leveraged positions between approximately $835 and $840, making this area the clearest short-term liquidity target above the current price. If ZEC breaks through this level, it could retest $850 or even reach its recent peak near $880.