Zcash price targets $840 as bullish trend holds

Zcash price recovered from a midweek drop and moved back above $800 as buyers defended the broader uptrend, but overbought momentum, weak capital flows, and a long-term bearish divergence raise the risk of another correction.

Zcash price recovers above $800 after sharp shakeout

According to data from crypto.news, Zcash (ZEC) price opened Aug. 26 at $767.91 before falling to $760.30 as hotter-than-expected US inflation data pressured risk assets. ZEC subsequently recovered above $800 and traded at about $807 on Aug. 28, putting it roughly 6% above Wednesday’s opening level.

The rebound followed an unusually strong rally that lifted ZEC from below $500 in mid-August to an eight-year high near $880. The 4-hour chart shows that the strongest leg of the move began around Aug. 19, when the token broke out of a prolonged consolidation between approximately $480 and $520.

Momentum then accelerated through $560, $680, and $760 before sellers appeared near $880. ZEC has since entered a wide consolidation range, with the price moving primarily between $760 and $850.

The Aug. 26 drop did not break the recent structure because buyers returned near the lower end of that range. However, repeated upper wicks between $840 and $880 show that traders continue to take profits when ZEC approaches its recent highs.

The recovery came as market attention remained focused on the possibility of converting the Grayscale Zcash Trust into a spot exchange-traded fund on NYSE Arca. Expectations surrounding the proposed product have supported institutional interest in an asset with a relatively limited circulating supply.

Zcash’s Network Upgrade 7 governance process has also contributed to market interest. Proposals under discussion include reducing block times from 75 seconds to 25 seconds and changing the network’s issuance schedule. The final effect will depend on which changes receive community support and are implemented.

ZEC liquidation map puts $840 in focus

The three-day liquidation heatmap identifies a heavy concentration of leveraged positions between approximately $835 and $840. The brightest band sits just below $840, making that area the clearest short-term liquidity target above the current price.

A move into the zone could force short positions to close and help ZEC retest $850. If buying pressure continues, the recent peak near $880 would become the next resistance level.

Several additional liquidation bands appear between $840 and $855, creating a broader pocket of overhead liquidity. Price may be drawn toward those levels, but the concentration could also increase volatility as liquidations and profit-taking occur together.

The heatmap shows thinner liquidity near the current price around $800–$810. That relative gap may allow ZEC to move rapidly once it breaks out of its immediate range.

On the downside, liquidity is concentrated around $775 and more heavily near $750. A rejection from $835–$840 could therefore send the token back toward $780 before buyers find meaningful support. Losing that area would put the larger $750 pool in play.

Zcash technicals remain bullish but stretched

The daily chart keeps ZEC in a strong uptrend, although its indicators show that the advance has become stretched. Price at $805.19 remains far above the Bollinger Band midpoint at $625.69, while the upper band has expanded to $921.03.

Wide Bollinger Bands indicate elevated volatility rather than a clear directional signal. ZEC could revisit the upper band if it clears $880, but the distance from the $625.69 midpoint also shows how far the price has moved from its recent average.

Daily RSI stands at 72.29, above the conventional overbought threshold of 70. Its moving average is lower at 69.61. The reading supports continued bullish momentum, but it also leaves ZEC vulnerable to profit-taking if buyers fail to produce another breakout.

The 4-hour picture is more mixed. ZEC remains above the Supertrend support at $731.71, preserving the broader bullish setup. A daily close below that level would weaken the trend and expose the $680–$700 breakout region.

Chaikin Money Flow is at negative 0.07 on the 4-hour chart. The reading suggests that capital flows have not fully supported the price recovery, even though ZEC returned above $800. A move back above zero would offer stronger confirmation that buyers are accumulating rather than merely covering short positions.

Long-term divergence warns of deeper ZEC correction

Crypto analyst Crypto Patel pointed to a bearish divergence on Zcash’s two-week chart, where price has pushed higher while momentum has weakened. According to the analyst’s chart, previous ZEC cycles included drawdowns of 97.94% between 2018 and 2020 and 95.74% between 2021 and 2024.

Historical losses do not establish that ZEC will repeat those declines. The current market structure, potential institutional products, and network developments differ from earlier cycles. Still, the divergence adds weight to the caution already visible in the overbought daily RSI and negative 4-hour money flow.

The chart places the long-term resistance area around $700–$800, which ZEC is now testing from above. Holding this former ceiling could turn it into structural support. Losing it would increase the risk of a larger pullback toward lower historical zones.

For the short-term bullish case, ZEC must hold $780, clear the $835–$840 liquidity wall, and then break the recent high near $880. Such a move would bring the daily upper Bollinger Band around $921 into focus.

The bearish scenario begins with another rejection near $840, followed by a break below $780. The next downside levels would be $750 and the 4-hour Supertrend at $731.71, while a sustained loss of $731 would leave the breakout increasingly exposed.

US investors will also be watching inflation expectations and the proposed Grayscale product. Sticky inflation could keep pressure on high-volatility crypto assets, while progress toward a regulated US spot vehicle could provide a separate source of ZEC demand.