Zcash Price Shows Bullish Structure but Sentiment Risks Stall Momentum

Zcash (ZEC) price continues to trade within a well-defined uptrend, forming an ascending wedge that typically points to a potential bullish breakout. This constructive technical pattern has kept traders attentive, as ZEC gradually pushes higher while consolidating near key resistance levels. However, despite the positive chart structure, weakening investor sentiment remains a notable obstacle that could limit upside momentum in the near term.

Toward the end of 2025, market sentiment around Zcash briefly improved, fueling expectations of a stronger recovery. That optimism faded quickly as the new year began, with sentiment metrics turning negative once again. Negative sentiment often reduces risk appetite, causing traders to hesitate on new positions even when prices trend higher. This lack of conviction can slow buying pressure and increase the probability that ZEC fails to sustain its current structure long enough to achieve a confirmed breakout.

On-chain data provides a more balanced outlook. The top 100 Zcash holders have continued accumulating over the past week, increasing their combined holdings by roughly 6%. This accumulation occurred despite price consolidation, suggesting long-term confidence from major investors. Large holder activity often plays a stabilizing role, as their buying can absorb selling pressure from smaller participants and reduce the likelihood of sharp declines.

At the time of writing, ZEC price hovers around $503, trading within an ascending channel and showing prolonged consolidation. This sideways movement reflects equilibrium between buyers and sellers as the market awaits a catalyst. A confirmed breakout from the ascending wedge could propel Zcash price higher by as much as 38%, with $802 as a potential upside target. To validate this bullish continuation, ZEC must reclaim and hold the $600 level as support.

However, downside risk remains if investor sentiment continues to deteriorate. Weak participation could drain momentum and trigger a breakdown below the wedge structure. In a bearish scenario, Zcash price may fall toward the $442 level, invalidating the bullish outlook.