Zcash has been one of the strongest performers in the entire crypto market this month, and the rally has now pushed the price back above $700 after an explosive multi-week climb. But not everyone believes the move should be chased here. Well-known analyst Altcoin Sherpa shared a cautionary take, saying he personally sold his position and is fully out for now. His message was simple:
“$ZEC — would be selling here personally or at least taking profit, I did. All out. Great coin but would see how price develops from here before hopping back in.”
His chart gives several reasons why he believes the current level is a smart zone for locking in gains.
What Sherpa’s ZEC Chart Shows
The chart Altcoin Sherpa shared is a clean Fibonacci structure mapped on the 4-hour timeframe. The key resistance level sits at the 0.0 fib line near $749–$750, which represents the previous high from earlier in the month. The Zcash price is now pressing directly into this zone, which historically acted as a strong rejection point.
Below that resistance, Sherpa highlights several important levels:
• 0.236 fib at $580 – Price reclaimed it aggressively during the breakout.
• 0.382 fib at $476 – A major support during the last pullback.
• 0.5 fib at $392 – The midpoint of the entire rally and a key reclaim level.
• 0.618 fib at $307 – Remains the deeper support if the market resets.
The structure shows that ZEC’s entire move has been extremely vertical. The candles from $480 to $720 formed almost uninterrupted, meaning liquidity in this range is thin. When a move happens this quickly, there is usually little structural support underneath—something traders often refer to as “air.”
Volume also spiked heavily during the breakout and has since cooled. This often signals exhaustion, especially when the chart pushes directly into a previous high without forming a higher-low structure first.
Sherpa also included a projection sketch suggesting that even if the ZEC price eventually breaks above $750, it may first pull back into the $580–$620 range before resuming an uptrend. His advice reflects this scenario.
Is Selling at $700 the Smart Move?
There are arguments on both sides.
Why taking profit makes sense now:
ZEC is up several hundred percent in only a few weeks. The chart is approaching a major resistance zone. RSI on multiple timeframes shows overheated conditions. And most importantly, the rally has been parabolic without meaningful consolidation.
Why some traders might hold:
ZEC has huge narrative momentum. Arthur Hayes just publicly said “ZEC > XRP” and bought more. Privacy is the dominant narrative of Q4. And once ZEC breaks $750, the chart opens a clean path toward $820–$900.
Both can be true at once. The current price zone is objectively a high-risk area to buy and a logical area to take profits, but the broader trend is still bullish.
The safest interpretation is that ZEC likely needs a cooldown. A pullback into the $580–$620 zone would reset indicators, let traders re-enter, and build a stronger base before aiming for new highs. For now, Sherpa’s caution reflects standard risk management after an extreme run.
Read also: The Privacy Thesis Following $ZEC’s 10x Rise: Why Crypto Can’t Reach Mass Adoption Without It
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