ZEC Surges 18% and Heads Toward the $310 Mark — One Uncertain Factor Could Determine the Success of This Rally

Zcash (ZEC) has just experienced an impressive breakout, attracting strong attention from both investors and traders. The current technical structure shows positive signals, while the breakout of the descending wedge pattern confirms a clear bullish momentum.

However, to sustain this growth, ZEC must overcome important resistance levels ahead. Its next move will largely depend on Bitcoin’s ability to maintain support at key levels.

Zcash Looking for Direction from “King” Bitcoin

In the past three days, the correlation between ZEC and Bitcoin has changed significantly. From a negative correlation, this index has surged to 0.83, indicating that ZEC’s price is now closely tracking BTC’s movements. This synchronization suggests that ZEC’s recent breakout is mainly driven by overall market optimism rather than intrinsic factors.

However, this strong correlation also presents challenges. If Bitcoin can break through the critical resistance at $75,000, Zcash is expected to benefit directly, with potential to surpass $300. Conversely, any signs of weakness from Bitcoin could lead to a sharp decline in Zcash, regardless of its current technical indicators. Therefore, Bitcoin’s next move will be decisive for ZEC’s price trajectory.

Correlation between ZEC and Bitcoin | Source: TradingView Data from the liquidation map shows market sentiment leaning bullish for Zcash. The total value of long liquidations is at $38 million, while short liquidations only reach $13 million. This indicates traders are strongly betting on ZEC continuing its upward trend. Notably, the largest liquidation cluster is currently at the $243 level. If ZEC drops to this level, it will trigger $13 million in long liquidations, leading to a chain of sell-offs and potentially pushing the price lower. This is a structural weakness investors should watch out for if the rally cannot be maintained.

Zcash Liquidation Map | Source: Coinglass## Zcash Could Reach $310 Target

Currently, Zcash is trading around $273, just below the key resistance at $275. Breaking out of the descending wedge pattern opens a 45% upside potential, with a technical target set at $310. Notably, the 18.6% increase in the past 24 hours clearly indicates strong buying pressure, further boosting confidence in this breakout.

The next resistance level is at $303, and positive market signals suggest ZEC has a good chance to surpass this level. If a close above $303 is confirmed, Zcash could reach $310 or higher, fulfilling the wedge pattern’s growth target.

ZEC Price Analysis | Source: TradingView

However, if the bullish momentum weakens or selling pressure increases, Zcash may face a reversal risk. A drop to $244 would trigger $13 million in buy liquidations, accelerating the decline and invalidating the bullish thesis.

Overall, Zcash stands at a critical crossroads, where Bitcoin’s movement will play a decisive role. Investors should closely monitor the price actions of both BTC and ZEC to develop appropriate strategies in this volatile market.