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Zcash is trying to recover the losses accumulated in November after a sharp decline that cut its valuation by more than half.
The recent 40% rally has brought optimism to the market, but several fundamental factors suggest that ZEC may struggle to complete a meaningful recovery.
Zikash does not track Bitcoin
The RSI shows that the positive sentiment is improving as Zcash starts to regain its momentum. The index rose above the neutral 50.0 mark for the first time in nearly two weeks, indicating improving market confidence. A move into positive territory is often an early sign of a trend reversal It can support the continued movement of ZEC Rising.
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However, the recent rise in the RSI alone does not guarantee a full recovery. The broader market remains sensitive to macroeconomic indicators, and even slight changes in sentiment can affect market momentum. Sustained upward pressure will be needed to ensure that the current rally does not fizzle out prematurely.
The correlation of Zcash with Bitcoin is currently at -0.47, which reflects a negative correlation at a time when Bitcoin is starting to show signs of recovery. This divergence constitutes A threat to ZEC. If Bitcoin continues to rise, ZEC may face resistance, as negative correlation often limits upside potential when the overall market strengthens.
On the other hand, if Bitcoin loses momentum or falls lower, the negative correlation can work in favor of ZEC, allowing it to extend its independent demonstration. This dynamic creates uncertainty, as ZEC’s path forward depends heavily on Bitcoin’s next big move.
ZEC Price is making efforts
The ZEC is trading at $439 at the time of writing, which is below the major resistance of $442. The recent increase of 40.5% is remarkable, but still not enough to compensate for the collapse of 55% that occurred in November.
To achieve true recovery, You need Zcash It will increase by about 59% in the coming days, reaching $700. In the short term, a break above $442 could open the door to a move towards $520 if the level turns into support.
If Bitcoin’s negative correlation becomes an obstacle, ZEC can return At $403 and may drop to $340. This will erase part of the recent rise and invalidate the positive outlook.
