Zcash surges by 40% against the trend, RSI issues a reversal warning! Can the privacy coin leader withstand the $230 billion encryption Marketplace crash?

In the total market capitalization of the cryptocurrency market evaporating by $230 billion in a sharp decline, Zcash (ZEC) defied the trend with a 40% rise, becoming the only asset among the top 20 tokens to continue strengthening. However, technical indicators show its RSI has entered overbought territory, indicating a significant reversal risk. This article combines privacy zone narratives with technical analysis to explore the key support and resistance levels for Zcash’s future movement.

An Outlier in the Market Crash: Zcash Gains 40% in Seven Days, Leading the Way

As the total market capitalization of cryptocurrencies shrank by $230 billion and Ethereum dropped 12%, only two assets among the top 20 tokens remained on the rise. TRON experienced a brief 1.40% rise before reversing, while Zcash (ZEC), focused on privacy technology, moved independently against the trend, with a seven-day rise of 40.28%, climbing to $441.47, making it the brightest spot in the market downturn.

Privacy Zone Narrative Reboot: Zcash Achieves 10x Gains in Three Months

Starting from a low point of $40 in August, Zcash (ZEC) achieved an astonishing nearly 10-fold increase within three months. This performance is closely related to the renewed market attention on privacy zones. As regulators intensify scrutiny of transparent blockchains and users demand greater transaction anonymity, Zcash (ZEC), which employs zero-knowledge proof technology, is becoming a new direction for capital rotation.

Technical Indicators Signal Overbought: RSI Suggests Reversal Is Imminent

Despite the strong rise, technical analysis shows Zcash has entered a dangerous zone. The Relative Strength Index (RSI) reached 79.14, clearly in overbought territory. Typically, RSI above 70 indicates a risk of pullback, and the current value signals exhaustion in the market. Additionally, the Ichimoku cloud chart displays a typical parabolic rise followed by a pullback pattern, with the price retracing 8% after reaching a high of $480.

Key Level Analysis: Support and Resistance Levels Fully Explained

Currently, Zcash (ZEC) has a key support level around $400. If this level is broken, a deeper pullback to the $350–$380 range could be triggered. Resistance has reformed at $480, and any rebound attempts will face heavy selling pressure from profit-taking. Cryptocurrency investors should closely monitor the effectiveness of the $400 support, as it will determine the short-term trend direction.

Privacy Zone Outlook: Technical and Fundamental Battles

Although the fundamental narrative of privacy protection remains valid, the overbought signals from technicals cannot be ignored. Zcash (ZEC)’s price movement is at a critical technical decision point: whether to continue its independent privacy zone trend or follow the broader market for a deep correction. Crypto traders need to balance their long-term optimism for privacy zones with short-term technical risks.

Conclusion

Zcash (ZEC) has demonstrated impressive resilience amid this market crash, and the privacy zone narrative has indeed gained market recognition. However, the overbought warning from RSI and the technical chart signals of a pullback suggest higher short-term risks of chasing the price. Investors are advised to watch the critical support level at $400; if it stabilizes, consider partial positions, but if broken, be alert for a deeper correction. In cryptocurrency investing, balancing technical indicators with fundamental narratives is crucial.