- Zcash surges 12%, but can it break $500 soon?
- Key support levels for ZEC, eyes on $450 resistance.
- Traders await confirmation for ZEC’s next move towards $500.
Zcash (ZEC) has been experiencing a notable surge in its price following the announcement of a dynamic fee proposal by Shielded Labs, which aims to reduce transaction costs and ease network congestion. The coin saw a significant 12% rally, briefly reclaiming levels lost during the November correction. As the news impact begins to fade, market participants are now focusing on whether ZEC can maintain its momentum and reach the crucial $500 mark before the end of 2025.
Although the dynamic fee proposal generated initial excitement, with traders optimistic about its potential impact, the market has since absorbed most of the news. There have been no immediate changes on the blockchain, and traders are now looking toward whether ZEC can hold above key support levels.
Currently, ZEC is consolidating within a narrow price range between $435 and $442, a zone associated with prior distribution and potential short-term liquidation clusters.
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Key Levels and Price Action
For ZEC to reach $500, it must first break through significant resistance levels. A move above $450 would open the door to test the $480 level, where previous supply has created heavy resistance. However, if the price falls below $430, it could trigger liquidation cascades, sending ZEC toward the $400 to $380 range. A sustained loss of $400 would weaken the post-news bullish outlook and make a push towards $500 less likely.
Despite the recent surge, ZEC’s price action remains range-bound, and momentum indicators show a stabilization rather than acceleration. Trading volume has cooled since the announcement, indicating that traders are waiting for confirmation before making further moves. This phase typically favors mean reversion, with the market hesitant to push for aggressive trend continuation without a clear breakout.
Can ZEC Break $500?
For ZEC to have a realistic shot at reaching $500, it will need to break above the $450 resistance level and maintain strong buying pressure. A confirmed breakout above this level, backed by increased volume and sustained strength in the privacy coin sector, could pave the way for a push towards $500. However, without significant volume or broader market support, ZEC’s price is likely to remain within its current consolidation range for the time being.
Source: Tradingview
Until a clear breakout or breakdown occurs, the path to $500 remains uncertain, and traders are closely watching for signs of a sustained move in either direction.
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