Will Zcash Price Continue To Rally Or Fall Flat After Its 4-Year High?

Core Insights - Zcash (ZEC) has experienced a significant price increase of nearly 74% in the past week, demonstrating resilience compared to other altcoins [1] - The buying pressure for Zcash remains strong, with both institutional and retail investors actively participating in the market despite overall market panic [2][4] - The Money Flow Index (MFI) is above 95, indicating robust buying activity, while the Chaikin Money Flow (CMF) remains positive, suggesting continued interest from larger players [2][3] Market Dynamics - Zcash's price rebounded sharply after a brief dip to $150 on October 10, quickly recovering to nearly $290 due to consistent inflows from both retail and institutional investors [4] - Although buying activity is strong, the CMF has not returned to its early-October peak, indicating that full-scale institutional momentum has not yet fully resumed [5] Risks and Volatility - The primary risk for Zcash lies in the derivatives market, where there is a significant tilt towards long positions, with $21.49 million in cumulative long leverage compared to $3.43 million in shorts [6] - A sudden price drop towards $178 could trigger liquidations of leveraged long positions, potentially leading to forced selling and increased volatility [7] Technical Analysis - Zcash's daily chart indicates a technically sound rally, trading within an ascending triangle, with Fibonacci levels providing strong support [8] - The current price of ZEC is around $287, with immediate support identified near $251 [8]