Zcash (ZEC) Price Analysis: $400 in Sight or Resistance Ahead

The Zcash (ZEC) price surged after breaking out from a decisive phase, with bulls taking control of the rally. The token rose by more than 20% to $283, while volume increased by over 47%. The move pushed ZEC into an important resistance area after breaking the decisive level around $330, and the price is now testing a range that could extend gains if it holds.

However, the rally is approaching a major supply zone near the $400 level, putting the market at a critical decision point: either confirm continuation through a clean breakout or face rejection that could unwind recent gains.

Derivatives data: momentum improves, but crowding risk rises

ZEC’s advance is supported by a sharp rise in open interest (OI), which has reversed its downtrend and moved higher alongside price. This typically indicates that new positions are entering the market, rather than the move being driven only by short covering.

While rising OI during an uptrend often supports continuation, the funding rate signals caution. Despite the price surge, funding remains deeply negative, suggesting aggressive long positioning and that traders are paying to maintain long exposure.

This combination points to a crowded setup. If momentum slows near resistance—particularly around the $400 zone—it could trigger a long squeeze. The result would be a potential sharp, short-term pullback before any continuation attempt.

Breakout and key levels: $370–$400 supply, $350 support

ZEC reportedly delivered a clean breakout from a descending structure, moving from the $220–$260 accumulation area toward the $370–$380 resistance band. The move also coincided with a shift in short-term structure, with price reclaiming $350 as support.

Momentum indicators cited in the report include RSI pushing into the 70+ zone and OBV showing a steady rise, which the article interprets as sustained buying pressure rather than a one-off spike.

At the same time, price is now testing a supply zone between $370 and $400, described as a historically strong rejection area. A breakout above $400 would be viewed as confirmation of trend continuation and could open the path toward $450–$480.

On the downside, failure to clear the $370–$400 zone could lead to a pullback toward $350, with deeper support noted near $300.

Impact and near-term outlook

The article frames ZEC as being at a decision point where momentum is strong, but continuation requires confirmation at resistance. It suggests that if bulls sustain pressure, the move may extend into a fresh expansion phase. If price is rejected in this area, it could trigger a quick shakeout before the next trend forms.

It also highlights that the next few days may be crucial, and that a sustained move above $390 could push ZEC beyond $400.

Key levels mentioned

• Current/near-term resistance: $370–$400 (supply zone)
• Breakout trigger: above $400
• Upside targets: $450–$480
• Support: $350
• Deeper support: near $300

Note: The article includes images related to price and derivatives metrics, but no additional numerical derivatives values (such as exact funding rate or open-interest figures) were provided in the text.