Zcash Price Holds Key Support as Bulls Defend Critical Moving Averages

Zcash (ZEC) has entered a pivotal technical phase after surrendering part of its strong July rally, with the cryptocurrency now testing key moving-average support that could determine its next major move.

At the time of writing, ZEC is trading near $457, down from its recent local high of around $580. Despite the correction, the broader recovery trend remains intact as long as buyers continue to defend the current support zone.

The recent decline has pushed ZEC back toward a crucial technical confluence, with the 50-day moving average sitting near $461 and the 100-day moving average around $475. Price action is hovering around these levels, making the next few trading sessions especially important for confirming whether bulls can regain momentum.

Unlike previous sharp selloffs, this pullback appears relatively controlled. Trading volume has steadily declined throughout the correction, suggesting the move is being driven more by profit-taking than panic selling. Lower selling pressure often signals that the market could be approaching a stabilization phase.

Momentum, however, has weakened. The Relative Strength Index (RSI) has slipped to approximately 42, falling below the neutral 50 level. While the indicator is not yet in oversold territory, it reflects fading buying strength following July's rally.

Meanwhile, the 200-day moving average, currently near $413, continues to trend higher and provides another significant layer of long-term support. As long as ZEC remains above this level, the broader recovery structure from April's lows is still technically valid.

For bulls, the immediate objective is reclaiming the 100-day moving average near $475. A successful breakout above that resistance could improve market sentiment and pave the way for another attempt at the psychologically important $500 level. Beyond that, the next major resistance lies between $520 and $540.

If buyers fail to defend the 50-day moving average, however, Zcash could face a deeper correction toward the rising 200-day moving average, where long-term support would likely be tested.