Zcash (ZEC)

#ZEC Update: Why I Think More Base Building Is Needed

A lot of traders are asking whether Zcash is ready to resume its uptrend.

My view is that price likely needs more time.

The reason isn't bearishness. It's structure.

When ZEC exploded from the $170 area to over $700, it moved through the $300-$350 region so quickly that very little true price discovery occurred there. The market never really accepted that area as fair value.

The longest consolidation around that zone was only about 12 days.

Since then, price has also fallen back through the same region just as quickly.

This creates what I consider "unfinished business" on the chart.

Strong bull markets are often built on solid foundations. The healthiest scenario may not be an immediate rally back to new highs, but rather a period of consolidation around the $300 level where:

• Weak hands exit
• Strong hands accumulate
• Momentum resets
• Moving averages catch up
• The market establishes a new base

I'm also watching the daily RSI, which continues to show bearish divergence. Momentum has been making lower highs even as price attempted to recover.

Could ZEC move higher immediately? Of course.

But from a structural standpoint, several weeks or even months of base building around the $300 region would create a much healthier foundation for a sustainable advance later.

Remember: The strongest bull markets are usually built during the periods that feel the most boring.

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