**Technical Breakdown Reveals ZEC's Structural Weakness After Extended Rally**

ZCash (ZEC) has experienced a significant correction following an extraordinary uptrend that propelled the asset from $50 to $775. While the initial surge demonstrated strong bullish momentum, the subsequent consolidation period spanning 3–4 months painted a different picture, suggesting market exhaustion rather than sustainable strength. During such parabolic advances, prolonged sideways trading patterns typically indicate distribution—a phase where institutional players methodically reduce positions while retail participants remain optimistic about further gains.

**Distribution Phase and Pattern Failure**

The bearish momentum was solidified when ZEC broke through a pennant formation at the $440 level. This breakdown proved critical because failed continuation patterns signal a decisive loss of bullish control and a reversal in underlying market structure. The situation deteriorated further when ZEC attempted to reclaim the $440 level but failed—a classic behavior where former support transformed into resistance. This flip indicates that selling pressure has overtaken buying interest, a telltale sign of a regime shift.

**Current Price Action and Momentum Deterioration**

At its current price point of $410.89, ZEC continues showing weakness with limited recovery capacity. Technically, the formation of lower highs confirms the collapse of the prior bullish trend structure. Momentum indicators remain subdued, with no meaningful buying surge following the retest attempt, confirming that demand has substantially deteriorated. The fact that upside liquidity was already consumed near the $775 peak leaves the market biased toward discovering lower demand zones.

**Critical Resistance and Trading Implications**

For bullish recovery to materialize, ZEC must decisively reclaim and sustain above the $440–$460 resistance band with accompanying volume strength. Without this development, the path of least resistance tilts heavily toward additional downside exploration. Market participants should monitor this resistance zone carefully, as a confirmed break and hold would be required to shift the current bearish bias. Until proven otherwise, caution remains warranted as the technical picture suggests sellers maintain the advantage.