The price of Zcash has reached an important technical point. Quotes continue to tighten under the descending resistance line, and volatility is noticeably decreasing. The market seems to be holding its breath, waiting for the next impulse.
As of January 28, ZEC is trading around $387, losing about 2.5% over the day. Earlier in the week, the coin saw a sharp rebound from local lows, but the movement failed to develop. The growth attempt fizzled out, and the structure remained under sellers’ control.
Short-Term Dynamics: Compression Instead of Recovery
The four-hour chart shows that Zcash sharply bounced off the $330–335 zone, where a wave of liquidations had previously occurred. The price quickly returned to the $395–400 range, but encountered strong resistance there.
The breakout did not happen. After the failed growth attempt, the quotes began to slowly slide down and are now fluctuating in a narrow range of $385–390. Each new rebound attempt forms a lower high. This is a classic sign of compression, not accumulation.
Trading volumes in this section are decreasing. Market participants are in no hurry to open new positions, preferring to wait for a clearer signal. Volatility is compressing, which usually means the market is preparing for a directional move.
Key levels in the short term remain unchanged. From above, the descending resistance line in the $395–400 zone exerts pressure. From below, support in the $370–375 area is still holding the price.
Medium-Term Structure: Risk of Further Decline
Looking more broadly, the overall picture remains cautious. The price is still moving within a descending formation, where every recovery runs into the same resistance line. Multiple failed growth attempts strengthen sellers’ control, even despite the slowdown in the decline.
The latest rebound from the lows looks more like a technical reaction from support than the formation of a sustainable bottom. The market structure has not changed. As long as the price remains below the upper boundary of the descending wedge, the scenario of continued pressure remains relevant.
To change the picture, Zcash needs not just to briefly pierce resistance, but to consolidate above it. Without this, any upward movements remain corrective.
Key Scenarios and Levels
A positive scenario is possible only with a confident return above $400. Such a move would break the chain of lower highs and call into question the current downward structure. In this case, the market would receive a signal to reconsider expectations.
The negative scenario is associated with the loss of support in the $370 zone. If this level is broken, pressure may intensify and the price may again head toward the $330–335 area, which has already served as a downside target before.
Until Zcash moves beyond the current range, it remains in a compression phase. Volatility has not disappeared; it is merely accumulating.
What’s Next?
Zcash is not currently showing signs of panic, but there is also no confirmation of recovery. The market is squeezed between support and descending resistance, and the structure still leans in favor of continued pressure.
The key move is still ahead. The direction will be determined only after the price breaks out of the current wedge. Until that happens, ZEC remains under resistance, and market participants have no choice but to wait and closely monitor the levels.
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