Can Zcash Reclaim Momentum After Recent Profit-Taking? Key Support Zones to Watch

Zcash kicked off 2026 riding momentum from one of the market’s strongest rallies, maintaining over 780% year-on-year gains despite recent pullbacks. After climbing 53% in just 30 days, ZEC encountered profit-taking pressure in late December that triggered a sharp 10% correction. However, the underlying uptrend structure remains intact, supported by renewed accumulation interest and shifting capital flows. The question now: can buyers defend critical support and push toward breakout confirmation?

Support Holds as Capital Returns to Buyers

The December 29-31 period revealed the classic pattern of profit-taking followed by tactical accumulation. Exchange inflows spiked to $38.22 million on December 29 as early buyers locked in gains, followed by another $7.88 million on December 30. This selling pressure caused prices to test lower within the established uptrend channel.

The turning point came on December 31, when capital flows reversed sharply into $16.63 million in outflows—a clear signal that buyers were stepping back in at discounted levels. The Money Flow Index (MFI) corroborates this accumulation: even as prices declined, MFI climbed higher, creating a bullish divergence that suggests institutional or informed retail interest was absorbing weakness rather than capitulating.

This dynamic is crucial. The lower boundary of the uptrend channel sits near the $500 zone. As long as Zcash holds above this level on a daily close, the structure preventing a deeper breakdown remains valid. Current price at $357.71 marks a significant pullback from the recent highs, but it has not breached critical support foundations.

Technical Checkpoints for Breakout Confirmation

For the uptrend to resume with conviction, Zcash faces a series of technical hurdles:

Immediate Target - $559: A clean daily close above this level would confirm renewed buying strength and require an approximate 56% move from current levels. This represents the first validation that profit-taking has been fully absorbed.

Breakout Zone - $596 to $626: Surpassing $559 targets this premium band, which functions as the actual breakout window. Position within the ascending channel at these levels would unlock the path to measured targets.

Extended Targets - $657 and $699: Above the $596-$626 zone, these measured extension levels come into play. Achieving this band maintains the 84%+ channel breakout target intact.

Risk Factors: When Structure Breaks

The bullish scenario hinges on two conditions: (1) ZEC remains above $500, and (2) capital flows and MFI readings maintain buyer-positive alignment.

A complete daily candle close below $500 would signal sentiment deterioration and structural breakdown risk. At that juncture, attention shifts to whether the lower trendline of the ascending channel provides a secondary defense—or if it too gives way. Until that scenario materializes, buyers retain tactical control of the price action.

What Recent Data Tells Us

Year-to-date performance shows ZEC up 673% on a 12-month basis, though the 30-day window has compressed due to recent profit-taking (-17.05%). The 24-hour range ($346.16 to $377.13) reflects continued volatility around current support zones. This compression is normal after extended rallies and often precedes the next directional move—either a convincing breakout or a deeper retracement.

The technical framework remains constructive provided support holds and capital flows align with buyers. The next two weeks will likely determine whether Zcash mounts a sustained breakout attempt or consolidates further before the next leg higher.