After weeks of strong momentum, the Zcash token is showing its first signs of fatigue. The rally that began in late September pushed ZEC price up more than 1,000%, drawing attention from traders and analysts across the market.
Now, after a pullback of over 20% in just two days, some market watchers could be anticipating a deeper drop.
According to crypto analyst Eric Van Tassel on X, the current dip may not be the disaster that many fear. His chart shows ZEC still moving within a well-defined ascending channel, which has guided its price for weeks.
The pullback has brought the Zcash price close to the lower boundary of that channel around $500 where buyers have previously stepped in. Eric pointed out that even if the ZEC token drops to that region, the overall structure remains bullish.
ZEC has formed higher lows since September. Higher lows show that demand is growing and support a healthy uptrend.
Eric Van Tassel’s chart shows ZEC trading above a long-term support line. The latest candles are near the middle of the channel. This zone has caused rebounds before, suggesting momentum could return when selling pressure eases. Eric says the trend’s “foundation” is the higher lows, not the temporary peaks. As long as ZEC stays above $500, the uptrend can hold.
Why ZEC Bulls Might Still Have the Edge
A market pullback often tests how strong a rally truly is. In Zcash’s case, the correction may simply be part of a larger consolidation before another potential leg up. The token has spent weeks building upward momentum, and such sharp rallies usually take pauses along the way.
ZEC’s path forward depends on whether it can maintain its channel support and attract fresh volume near that $500 region. If it does, the structure that Eric Van Tassel described could hold firm, keeping the broader uptrend alive.
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The ZEC token has seen extraordinary gains over the past month, so some cooling was bound to happen. Despite the noise from bearish voices, the broader Zcash trend still shows signs of strength. Eric Van Tassel’s analysis suggests that the market is simply testing its foundation, not tearing it apart.
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