Strong Bounce Signals Potential End to Short-Term Correction
Zcash [ZEC] saw a sharp rebound over the past 24 hours, gaining 12% from recent lows and capturing renewed investor interest. The daily chart continues to suggest a bullish overall trend, with the $298 level identified as the next key resistance.
Technical indicators bolster this outlook. The Stochastic RSI approached the oversold region near 30, signaling that the latest upswing may mark the conclusion of a short-term correction phase.
This recovery has traders closely watching whether ZEC’s momentum will evolve into a more sustained rally.
Open Interest Surges to $237 Million, Leveraged Positions Increase
According to Coinalyze data, ZEC’s Open Interest (OI) rose by 10% in the last 24 hours, reaching approximately $237 million. This increase highlights a surge in leveraged trading and speculative inflows, a pattern often preceding heightened volatility as markets adjust to elevated leverage levels.
Market observers note that such spikes typically foreshadow volatile sessions, making the upcoming period critical in determining ZEC’s direction.
Retail investors have been especially active, fueling liquidity and optimism across exchanges. Accumulation clusters around current price points suggest that smaller investors are providing significant buying support, mirroring behavior seen in previous altcoin rallies where early retail interest often preceded institutional entry.
If this accumulation trend continues, ZEC may attract renewed institutional attention.
Spot Market Strength vs. Speculative Fragility
While current momentum looks promising, the durability of ZEC’s rally depends on more than short-term speculation. Leveraged rallies can quickly falter without strong follow-through from spot market buyers and long-term holders.
CryptoQuant data shows both Spot Taker CVD and Futures Taker CVD remaining in Taker Buy Dominant territory, confirming active demand. However, sustained upward movement requires deeper participation from whales and institutional players.
Maintaining support around breakout levels remains crucial. A solid defense here could preserve momentum toward the $300 mark.
If open interest and spot demand continue to rise simultaneously, ZEC may not only retest $300 but could also set sights on its next psychological target near its all-time high of $391.
