Zcash price enters 2026 after one of the strongest increases in the market, still up about 53% in the past 30 days and over 780% year-over-year. Although the trend is still within the ascending channel, a recent small pullback tested the bulls. This decline was due to profit taking, not a trend failure.
New buying interest, improved flows, and a major support zone currently hold the breakout structure.
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Buy on the push absorbs selling pressure despite failing trend line test
Zcash trades within an ascending channel, with highs and lows defining an uptrend. The upper trendline rejected the December 29th price and momentum was paused. This rejection caused a nearly 10% decline (highlighted later) from December 29th to 31st, but the structure remains intact.
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This was a decline with the possibility of profit taking. On December 29th, the exchange had inflows of $38.22 million, and on December 30th, it had inflows of $7.88 million. Green spikes indicate selling pressure.
However, by December 31st, the mood had changed, with flows turning to an outflow of $16.63 million, once again signaling bullish buying and supply leaving the exchange. As a result, prices rebounded again.
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The Money Flow Index (MFI) confirms this. The MFI, which tracks money moving in and out of assets based on volume and price, rose between Dec. 29 and Dec. 31 while prices fell. This is the same period when most of the profit taking (from spot inflows) occurred.
This is a bullish divergence, suggesting that the bullish buyers took advantage of the pullback to accumulate rather than exiting their positions. These helped offset pressures to secure profits.
As long as ZEC remains above the floor around $500, the bullish structure will remain intact. Only if MFIs continue to trend upward and spot flows remain aligned with buyers.
Key Zcash Price Levels for Breakout Confirmation
The first test for buyers is a daily close above $559. This confirms our new strength. That would require an 8% increase.
Beyond $559, the next zone to look at is $596 to $626. This band is the Zcash price breakout window. Depending on where the price is located within the channel, a break above this will pave the way for the $657 and $699 measurement targets. This kind of move would keep the channel breakout target above 84%.
If the price falls below $500 (the closing price of a daily candlestick), sentiment will weaken and there is a risk that the structure will collapse. Next, it will be interesting to see if the lower trendline of the channel provides support or breaks. Until that happens, the buyer is in control.
