Market Overview: Zcash/Tether (ZECUSDT) on 2025-12-29

Summary
• Price tested key resistance near $540 before retreating to consolidate near $525.
• Momentum shifted mid-day as RSI and MACD crossed below zero, signaling potential bearish bias.
• Volatility expanded during early ET hours but has since contracted near 525–535 range.
• Volume surged during the $540 peak and again during the selloff below $525.
• 20-period MA on 5-min chart now lags price, hinting at potential continuation of downward pressure.

Zcash/Tether (ZECUSDT) opened at $535.97 on 2025-12-28 12:00 ET, reached a high of $548.17, a low of $508.38, and closed at $522.77 on 2025-12-29 12:00 ET. Total volume was 93,134.5 ZEC, and turnover amounted to $49,146,845.53.

Structure & Formations

Price formed a bearish engulfing pattern near the $535–540 resistance zone, which coincided with a failed rally and a shift in momentum. A key support level appears to be forming near $525–530, where price has found repeated buying interest after the sharp selloff. A long lower wick at $513.34 suggests rejection at that level, reinforcing its potential as a short-term floor.

Moving Averages and Momentum

The 20-period moving average on the 5-minute chart has moved below price, indicating a bearish bias in short-term trading. MACD turned negative mid-day and remains in bearish territory, while RSI has moved from overbought to neutral, suggesting that the pullback may continue. The 50-period MA on the daily chart remains above the current price, implying a larger bullish trend is intact, but a close below the 50-period MA could trigger deeper correction.

Volatility and Bollinger Bands

Volatility widened significantly in the early hours of ET, with the 5-minute Bollinger Bands expanding to over $10 range. Price has since tightened and currently sits near the lower band of the 20-period Bollinger Band, suggesting oversold conditions. This may act as a temporary floor, but a break below could extend the range further.

Volume and Turnover

The largest volume spike occurred during the $540.52 high, with 14,002.697 ZEC traded, followed by a massive selloff at 09:45 ET, with 31,135.253 ZEC traded as price dropped to $513.34. Turnover also spiked during these periods, confirming the strength of both the rally and the subsequent pullback. Volume has since remained steady in the $525–535 range, indicating accumulation or sideways consolidation.

Fibonacci Retracements

Recent 5-minute swings show price testing the 523.6% Fibonacci retracement level at around $527.50, which is now acting as a minor support/resistance. On the daily chart, the 61.8% retracement of the recent move sits near $510–515, aligning with the 09:45 ET low. A close below this could validate deeper correction toward the $500 level.

Zcash is currently consolidating within a defined range on the 5-minute chart, with key support at $525 and resistance at $535. If this pattern continues, a break of either level could signal the next leg of movement. Traders should remain cautious of a potential break below $525, which could accelerate the downward trend.