The price of Zcash (ZEC) is trying to break out as selling pressure decreases by 85% — Is this a new bullish phase?

Today, the price of Zcash (ZEC) has fallen by about 2.2%. However, behind this minor adjustment, the technical chart is sending notable signals. After three months of spectacular growth with an increase of more than 1,278%, the price of ZEC has shown signs of cooling down without breaking the larger trend structure. Notably, selling pressure has decreased by up to 85% – a change that is not easily recognizable if only observing the surface of the market.

This combination has created the first signals indicating that ZEC may be ready to resume its strong growth, despite the recent short-term adjustment.

Efforts to break the flag pattern: A closing session confirmation is needed

In the past week, ZEC has formed a “falling flag” pattern ( after a surge since the end of October. This is a short-term correction pattern that often occurs after prolonged price increases. Currently, the price of ZEC has risen above the upper trendline of the flag pattern, but this breakout momentum has not yet been confirmed. To solidify the uptrend, ZEC needs a closing session above the ) mark – where the breakout line intersects with the horizontal resistance area.

![Zcash price $537 ZEC( tries to break through as selling pressure falls by 85%])https://img-cdn.gateio.im/webp-social/moments-0a10e049a231ec06c50a2c1e943d523f.webp(Zcash price attempts to break through | Source: TradingViewThe overall trend of ZEC remains positive as the latest low is higher than the previous major low, and is further supported by the RSI indicator. The RSI index – a measure of the speed of price fluctuations – has shown a hidden bullish divergence. Specifically, in the period from October 22 to November 7, ZEC made higher lows while the RSI made lower lows.

![The price of Zcash )ZEC( attempts to break through as selling pressure falls by 85%])https://img-cdn.gateio.im/webp-social/moments-808bcdcad6e86bd908238581c05aca14.webp(Hidden bullish divergence | Source: TradingViewHidden bullish divergence often appears in strong uptrends, when momentum temporarily weakens before exploding back. In other words, this is a signal that the large uptrend has not yet been broken.

If ZEC can close above $537, the market may witness a new rally being triggered.

Selling pressure decreases significantly as trading volume stabilizes again

The most notable point right now is the significant fall in selling pressure. The net cash flow on exchanges peaked at $38.91 million on November 12, reflecting a large influx of capital during the early stage of the rally. However, as of today, this number has dropped to $5.81 million, equivalent to an 85% decrease in selling pressure – completely in line with the effort to break down the flag pattern.

![The price of Zcash )ZEC( is trying to break out as selling pressure falls by 85%])https://img-cdn.gateio.im/webp-social/moments-30bbb355cd4cebea1edbbdd2c5a67166.webp(Sellers are losing interest |: CoinglassOn-Balance Volume indicator )OBV(, which tracks trading volume focusing on sessions of price increases or decreases, also supports the view that selling pressure is easing. OBV has broken above the downtrend line – a bullish signal indicating that the breakout effort is supported by capital flow. However, this indicator is currently moving sideways around the 8.16 million mark. If OBV surpasses this threshold, it will be a clear confirmation of the shift from selling pressure to buying pressure. Until that happens, the selling trend of ZEC has weakened but has not completely reversed.

![Zcash Price )ZEC( attempts to break out as selling pressure falls by 85%])https://img-cdn.gateio.im/webp-social/moments-3902ef4747ae20cf6457607ed1878675.webp(ZEC price finds volume support | Source: TradingViewFrom a trading volume perspective, the message is very clear: Selling pressure has decreased significantly. Although buying pressure has not really exploded, the pressure on ZEC's price is much lighter than it was two days ago.

Important price levels determining the next trend of Zcash

Currently, the price of Zcash is fluctuating around $502, lying between the support and resistance zones. A confirmed closing above the $537-) range would be an important signal for the continuation of the upward momentum. If this occurs, ZEC could target levels of $612, $688, $749, and even higher if the momentum is reinforced, especially with support from trading volume.

![Zcash price $538 ZEC( attempts to break through as selling pressure falls by 85%])https://img-cdn.gateio.im/webp-social/moments-7231aab4beb4ec03798af34561221fcc.webp(Zcash price analysis | Source: TradingViewThe nearest support level for Zcash is $488. If this level is breached, the next support zone will be )– which was a “lifeline” for the price during the early stages of the previous rally. If the price drops below $488, the case for the breakout will significantly weaken. Furthermore, if it breaks below $368, the bullish pattern will be invalidated, signaling a possibility of a deeper correction.

Mr. Teacher