ZEC Hits Technical Strain After Big Rally, Smart Money Moves Surge

$ZEC RSI forms bearish divergence, price stretched above 200 EMA, indicating potential short-term cooldown.

Fibonacci zone near 200 EMA marks key confluence if momentum fades; 9, 21, 50 EMA levels are next supports.

Large smart money moves include a premium long setup at $600.7 and a $3.62M USDC 10x leveraged position on ZEC.

Zcash is showing early signs of exhaustion following a sharp upward move, though momentum remains present. According to Eye Zen Hour, the cryptocurrency faces technical test as the RSI forms a bearish divergence, suggesting buyers may be losing steam.

Price has stretched above the 200-day exponential moving average (EMA), while a spike in sell volume points to local distribution. These indicators show the need for caution, even as the broader uptrend continues.

Technical Levels and Retracement Zones

Eye Zen Hour notes a critical Fibonacci retracement zone from the August 2025 lows to November 7 highs. The .618–.706 levels align just below the 200 EMA, a notable confluence area if momentum diminishes

Traders are closely monitoring the 9 EMA as the first support line. A breakdown here could shift focus to the 21 and 50 EMA levels. If selling persists, the 100–200 EMA cluster becomes the next key target, indicating where longer-term support may stabilize price.

Funding has flipped positive after a squeeze cleared short open interest, leaving holders since 2017 in profit. Eye Zen Hour emphasizes that patience and positioning are essential while the market digests recent gains. Momentum is strong, but technicals suggest a temporary cooldown could occur before continuation.

Premium Long Setup and Smart Money Activity

Crypto Patel identifies a premium long setup for ZEC, noting liquidity swept below the daily range low, which smart money appears to have collected. Entry is set at $600.7, with a stop-loss at $525.44 and a target of $750. The strategy calls for waiting until price taps the bullish order block, then confirming the structure on a lower timeframe before moving higher.

Adding to the interest, Lookonchain reports a new wallet, 0x8AAE, deposited 3.62 million USDC into HyperLiquid to open a 10x leveraged long on ZEC. This shows the increasing activity from large participants seeking exposure at current levels.

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