Zcash Price Surge Raises Technical Red Flags
Zcash has experienced a significant price surge in recent sessions, reaching nearly $1,250 and then falling back to around $1,124. Despite this, two technical indicators suggest that a correction may be imminent.
The first warning sign is the extreme divergence from its moving averages. The RSI (Relative Strength Index) peaked at 74 during the August rally but has not been able to generate a correspondingly higher high in the current price action.
This bearish RSI divergence indicates that the underlying momentum is waning, despite the asset's significantly higher price. Furthermore, ZEC has deviated drastically from its moving averages, creating a substantial gap below the current price.
As a result, if profit-taking picks up speed, the lack of nearby established support raises the possibility of a decline. The first crucial area to keep an eye on is roughly $1,040, $1,080, which corresponds to the most recent breakout region.