Zcash Price Rally Faces Correction Risk After 190% Surge
Zcash price rose from about $1,139 on 14 September to $1,535.82 on 18 September, marking gains of more than 190% since August. ZEC later retreated to around $1,455, showing that short-term selling pressure is increasing after the steep rally.
The broader Zcash price trend remains bullish, with higher highs and higher lows. However, momentum has weakened. The four-hour RSI fell to 68.35 and moved below its average, while the positive MACD histogram contracted. Resistance is concentrated at $1,500-$1,535. A confirmed break above $1,535 could open a path towards $1,625 and $1,750.
Traders are watching support at $1,420, followed by $1,375 and $1,250. Earlier support near $1,100-$1,123 and the $1,000 psychological level remain relevant if the correction deepens. Liquidation liquidity is concentrated near $1,420 and between $1,540 and $1,550, potentially increasing volatility.
The rally was supported by Network Upgrade 7 proposals. Nearly 99.9% of voters backed cutting target block times from 75 seconds to 25 seconds, while 98.9% supported retaining the current halving schedule. Paradigm co-founder Matt Huang also disclosed exposure to Zcash, strengthening institutional interest. Despite the bullish structure, analysts warn that a 10%-15% correction is possible. Traders should also monitor Bitcoin, Federal Reserve policy expectations, profit-taking, futures liquidations and an unconfirmed code-vulnerability report.
Bullish
The direct price impact remains bullish because ZEC has gained more than 190% since August, maintained a pattern of higher highs and higher lows, and received support from Network Upgrade 7 governance votes and disclosed institutional exposure. A break above $1,535 could extend the rally towards $1,625 and $1,750.
However, the short-term risk is elevated. ZEC has retreated from $1,535.82, the RSI has weakened, and the MACD histogram is contracting. Earlier futures open-interest declines, long liquidations, profit-taking, broader risk-off sentiment, higher rate expectations and an unconfirmed code-vulnerability report could amplify selling. A break below $1,420 may expose $1,375 and $1,250, while a deeper decline could revisit $1,100-$1,123 and $1,000. Therefore, the medium-term setup is bullish, but traders should expect sharp volatility and a possible 10%-15% correction.