Zcash price pulls back to key trendline support, is a bounce still likely?

Zcash price is testing a descending trendline support on the daily chart — March 20 | Source: crypto.news

Looking at additional technical indicators gives a more grounded view of the possible outlook for the privacy-focused asset. The Supertrend indicator, which helps traders identify prevailing trend directions, has flipped green since Tuesday, a sign that the underlying momentum is shifting in favor of the bulls.

On top of this, the RSI line has formed a bullish divergence with Zcash price since early January this year. A bullish divergence occurs when the price makes lower lows while the indicator makes higher lows. It means that the downward selling pressure is losing its grip despite the falling prices.

Hence, Zcash will likely bounce from the $230 support to $265, the current position of the super trendline, and then to the psychological resistance at $300 if bullish momentum remains strong.

However, if the bearish sentiment prevailing in the broader market latches on to the tokens price action and it loses the $230 support, a drop to $200 becomes a very real possibility.

Zcash price has a few fundamental catalysts lined up that could support the technical recovery.

First, the total amount of Zcash held in shielded pools currently accounts for over 30% of the total circulating supply. A surge in this metric means that a greater number of traders are now engaging with the core functionality of the network. This could attract more institutional interest as privacy becomes a more sought-after feature in the digital asset space.

Additionally, the 2026 roadmap for Zcash includes the Crosslink project, which is a move towards a hybrid Proof of Stake model. This transition is expected to lower sell-side pressure from miners and align the network with institutional ESG standards, potentially opening the door for new capital inflows.