The price of Zcash (ZEC) is trading at a critical inflection point, compressing beneath a falling resistance line as volatility contracts. As of January 28, ZEC is changing hands around $387, down 2.5% on the day. This follows a sharp rebound earlier in the week from lows near $330–$335, which failed to transition into sustained follow-through and stalled precisely beneath the descending resistance in the $395–$400 area.
On the 4-hour chart, price action shows compression rather than recovery, with each rebound attempt producing a lower high. Volume has tapered during this phase, consistent with a market waiting for confirmation. Immediate support is holding near $370–$375. From a broader perspective, analyst GainMuse highlights that ZEC is compressing inside a descending wedge, following multiple failures at the same falling resistance. These repeated rejections have reinforced seller control.
The recent rebound from the lows resembles a reaction off support rather than a base formation. Without a reclaim of the falling trendline, the technical structure favors a continuation risk toward the marked support target in the low $330s. A constructive scenario would require ZEC to reclaim and hold above $400, breaking the falling resistance and invalidating the lower-high sequence. Until price resolves beyond either boundary, ZEC remains in a compression phase where volatility is being stored rather than released.
