Zcash News: Smart money quietly increasing holdings after ZEC's 55% pullback; the key breakout level is at $227

Gate News reports that on March 24, Zcash (ZEC) price, after experiencing a 55% decline in 2026, is currently fluctuating around $226, still under pressure from the downward channel formed in late December last year. Although the price has touched the upper boundary of the channel multiple times, it has failed to break through. The bullish divergence formed below has prompted some investors to quietly increase their holdings, while others choose to wait or withdraw.

The daily chart shows that since late December last year, ZEC has made lower lows, while the Relative Strength Index (RSI) has shown higher lows, forming a classic bullish divergence. The derivatives market indicates that short positions are increasing again, but the funding rate has turned negative to -0.003%, suggesting market bears are dominant, yet there is still potential for price to rise. The Chaikin Money Flow (CMF) indicator is at -0.18, indicating limited participation from large spot traders, but the Smart Money Index (SMI) has made higher highs above the signal line, showing informed traders are accumulating during weak prices, betting on a breakout of the channel.

If ZEC maintains the key support at $227, it could trigger an approximately 18% rally to $267, with further targets at $285, $310, and $343. A confirmed breakout above these levels could bring the 1.618 Fibonacci extension target at $437 into focus. Conversely, if the $227 support fails, the price may decline toward $191.

Overall, Zcash is currently at a crossroads of bullish divergence and weak capital flow. The accumulation by savvy investors indicates a potential breakout opportunity, but the stability of the key support level remains crucial for the next move.