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The current price action on $ZEC continues to show signs of seller dominance, particularly as price pushes into the 540+ zone. While there have been multiple attempts to move higher, each rally has lacked strong follow-through, suggesting that upside momentum is weakening rather than building.
From a market structure perspective, the 540–545 region has acted as a supply-heavy area. Each test into this zone has been met with visible sell pressure, indicating that market participants are using strength to offload positions rather than accumulate. This behavior often signals exhaustion on the bullish side, especially when momentum indicators begin to flatten.
As of now, price remains below the 560 level, which is a key invalidation point for the bearish scenario. As long as $ZEC fails to reclaim and hold above this level, the probability favors a rotation back toward lower support zones. Failed breakouts are often followed by sharper corrective moves as trapped buyers exit positions.
Momentum is another important factor. Short-term momentum appears to be slowing, and the lack of aggressive buying volume on upward pushes reinforces the idea that buyers are losing control. In contrast, selling activity becomes more noticeable each time price approaches resistance, a classic sign of distribution.
📊 Trade Thesis
Bias: Short $ZEC
Entry Zone: 540 – 545
Invalidation / SL: 560
Downside Targets: 520 → 500 → 470
These downside levels align with prior reaction zones where buyers previously stepped in. If price begins to rotate lower, these areas may act as temporary pauses or bounce zones. However, a clean break below intermediate support could accelerate downside momentum.
It’s important to remember that crypto markets are highly volatile, and no setup is guaranteed. Market conditions can change quickly due to broader sentiment, macro news, or unexpected liquidity events. Risk management and position sizing remain critical, especially when trading assets like $ZEC that can experience sharp intraday moves.
At this stage, patience is key. If sellers continue to defend the 540+ area and price remains capped below 560, the bearish scenario remains intact. A confirmed break and acceptance above resistance, however, would invalidate this view and shift market dynamics.
💬 Do you see $ZEC breaking above resistance, or does the current structure favor another move lower?
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