Zcash Surges 9% as Dynamic Fee Proposal and Whale Demand Bolster Gains

Zcash (ZEC) has recently experienced a notable price increase, climbing over 9% to approximately $455. This movement highlights the potential for a breakout from its long-standing resistance zone.

ZEC's surge coincides with a proposal for transitioning from fixed transaction fees to a dynamic fee market, aiming to improve cost efficiency during high activity periods.
Trading volumes have risen significantly, with Cypherpunk Technologies increasing ZEC holdings and adding Zcash founder Zooko Wilcox as an advisor.
Increased accumulation from large holders has tightened the circulating supply, contributing to the asset's strong performance.

Zcash ZEC ZECUSD Chart

Resistance Testing and Technical Analysis

ZEC is near a resistance zone between $460 and $485, which has historically halted rallies.
Technical indicators show improving momentum, stable RSI levels, and positive spot inflow data.
If ZEC breaks above $472–$485, potential targets include $506, $556, and possibly $600–$620.

Mixed Long-Term Outlook

Some long-term indicators suggest caution, with wave analysis indicating a possible major corrective structure completion earlier in the cycle.
Bearish divergences and rising parallel channels hint that the current bounce might be corrective.
A rejection at resistance could lead to retracement towards $430, or even below $300 if bearish trends persist.

Zcash's price action remains at a crucial point, where breaking above resistance could extend gains, while failure might lead to consolidation or a downtrend.