Zcash (ZEC) Dips To Retest Key Bullish Breakout – Will It Bounce Back?

2026-01-02 15:23:25

**Date: **Fri, Jan 02, 2026 | 03:10 PM GMT

The broader cryptocurrency market has started the new year with modest strength, as both Bitcoin (BTC) and Ethereum (ETH) trade firmly in the green with gains of over 2%. While this positive momentum is lifting most altcoins, the privacy-focused token Zcash (ZEC) is moving against the broader trend.

ZEC is down more than 8% on the day. However, despite the red candles, the daily chart suggests this pullback may be a healthy bullish retest rather than the start of a trend reversal.

Source: Coinmarketcap

Retesting the Ascending Triangle Breakout

On the daily timeframe, ZEC had been consolidating inside a well-defined ascending triangle pattern, characterized by a series of higher lows pressing against a flat resistance zone near $476. This structure signaled steady accumulation and growing buyer confidence.

Earlier, bulls successfully broke above the $476 ceiling with strong momentum, sending ZEC sharply higher by nearly 66% — from the breakout base to a local peak around $556.59. This move confirmed the validity of the pattern and marked a clear shift in market structure.

Zcash (ZEC) Daily Chart/Coinsprobe (Source: Tradingview)

Following that rally, price has pulled back and is now trading near the $483 region. Crucially, this zone aligns closely with the former breakout level, making it a classic resistance-turned-support area. Such retests are common after strong breakouts and often act as a launchpad for the next leg higher if buyers defend the level.

What’s Next for ZEC?

The current retest phase is technically constructive, but the next move will depend on whether bulls can firmly defend the broader $426–$476 support zone. A strong reaction from this area would signal that buyers remain in control and are using the dip to accumulate.

If support holds and momentum returns, ZEC’s first key objective will be a reclaim of the $556.59 local high. A decisive move above this level would confirm strength and open the door for further upside.

In that scenario, ZEC could advance toward the ascending triangle’s measured target near $647.73, representing a potential upside of roughly 32% from current levels.

On the downside, failure to hold above the $426 support zone would weaken the bullish breakout structure and raise the risk of a deeper pullback, potentially turning the recent move into a failed breakout.

For now, all eyes remain on the breakout retest. How ZEC reacts around this key support area will likely determine whether the recent rally was just the beginning — or a move that needs more time to rebuild momentum.

Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.

About Author: Nilesh Hembade is the Founder and Lead Author of Coinsprobe, with over 5 years of experience in the cryptocurrency and blockchain industry. Since launching Coinsprobe in 2023, he has been providing daily, research-driven insights through in-depth market analysis, on-chain data, and technical research.

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