Zcash (ZEC) Pulls Back After Massive Rally. Is Another Breakout Coming?
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ZEC entered a consolidation phase after doubling in price from around $325 to above $650, according to market analyst Ardi. He shared a chart on X showing ZEC losing short-term support after weeks of steady gains. Traders now watch the $535 to $550 area as the next major support zone during the ongoing ZEC pullback.
The chart showed ZEC forming lower highs after reaching its local peak. The ZEC’s price also dipped below a short-term support level before recovering slightly.
Ardi described the move as part of a distribution structure that often appears after a sharp rally. The analyst added that the current setup still fits within the broader bullish trend unless macro support fails.
Why ZEC’s Massive Rally Began Slowing Down
ZEC posted one of its strongest rallies in recent weeks, climbing nearly 100% with little downside movement. The move pushed the token from around $325 to over $650 in a short period. During the rally, price continued forming higher lows while buyers defended each pullback quickly.
Ardi stated that the latest price action marked the first loss of a higher low pivot since the breakout began.
He noted that the breakdown below local support could send ZEC lower toward the $535 to $550 range. According to the chart, that zone acted as a previous consolidation area before the breakout accelerated.
How ZEC’s Breakout Rally Shifted Into Consolidation
The latest ZEC price analysis showed momentum slowing after the vertical move higher. The chart displayed several failed attempts to reclaim previous highs, forming a lower high structure near the top of the rally.
At the same time, the ZEC price swept below short-term support before bouncing. Traders often watch these moves for liquidity collection during volatile market conditions.
The rebound showed buyers still responding to lower price levels, although momentum remained weaker compared to the earlier breakout phase.
Why Traders Are Watching the $535 to $550 Support Zone Closely
The $535 to $550 region has become the main ZEC support level traders monitor. Ardi described the area as macro support where buyers could attempt another breakout setup if the ZEC price stabilizes.
Ardi also warned that losing the zone could trigger a deeper correction. For now, the broader ZEC bullish trend remains stable despite the situation of the ongoing consolidation.
Traders continue watching whether ZEC forms a stronger base around support or extends the current pullback further.
