Zcash (ZEC) staged a notable advance in late December as technical studies and on‑chain flows converged on a bullish thesis. Charts and volume patterns pointed to a final resistance cluster around $750–$800 that traders said needed to be cleared for a sustained run toward $1,000.
Chart analysts identified a string of resistance zones that ZEC had to overcome: $450, $470, $500–$610, $650, $740 and the $750–$800 band. Breaks and daily closes above the $450–$470 area were cited as the trigger for a potential 50–60% swing that would put price into the $650–$750 range first.
Immediate resistance in the $750–$800 range was identified as the final meaningful hurdle before a potential move toward four-digit prices. On the downside, a compact cluster of supports formed between $300 and $404, with key levels at $300–$310, $330, $374, and $404 helping to absorb pullbacks and stabilize price action.
From a momentum perspective, the daily RSI hovering near 63 suggested there was still room for further upside, while the weekly RSI reached extreme territory—reported around 94.24—highlighting the risk of a sharp mean reversion. Breakout attempts were also closely tied to volume dynamics, with expanding On-Balance Volume (OBV) serving as a key confirmation signal for the strength and sustainability of the move.
Pattern work pointed to bullish setups — ascending triangles and an inverse head‑and‑shoulders — but analysts also flagged a rising wedge on some timeframes. Rising wedges often precede corrective moves, and failure to hold the key support bands would likely have produced swift downside pressure.
On‑chain accumulation and downside scenarios
On‑chain indicators showed large wallets increasing exposure: reported whale holdings jumped by as much as 47%, and institutional treasuries — notably Cypherpunk Technologies — were described as expanding ZEC positions. That accumulation underpinned the bullish narrative and supported higher targets.
At the same time, commentators warned of material downside if structural supports broke. Scenarios included a pullback toward the $400–$450 area and, in the most severe readings, a drawdown approaching 30% if critical low levels were lost. Traders were reminded that leverage amplifies both gains and losses in these moves.
Market sentiment received an additional boost from high‑profile calls. Former BitMEX CEO Arthur Hayes was quoted describing $1,000 as ZEC’s “first stop at $1K,” a remark that coincided with short‑term speculative flows and helped amplify momentum.
Technical divergence signals — where price made lower lows while oscillators printed higher lows — were merged by analysts into the bullish case as evidence of a potential trend reversal, provided breakouts were accompanied by expanding volume.
Weekly extremes left a clear caveat: if momentum ran too hot without consolidation, the market could snap back quickly.
Investors are now watching whether ZEC can sustain a close and consolidation above the $750–$800 band; such a hold would materially increase the chance of a move toward $1,000, while failure to validate that range would likely shift attention back to the $400–$500 support corridor. V
