Zcash (ZEC) token has rebounded by around 25% from its Sunday low near $420, rising to about $530 on Monday.
The move came as traders rotated back into risk assets after the US and Iran reached a preliminary peace deal, which also pressured oil prices lower and supported broader market sentiment.
Bitcoin (BTC) also climbed after the deal, showing that crypto traders are treating the truce as a short-term risk-on catalyst.
ZEC is now flashing a major bullish reversal setup.
Zcash BARR Bottom Pattern Targets 150% Rally
ZEC’s daily chart is showing a potential Bump-and-Run Reversal, or BARR bottom, a bullish pattern that forms when price falls too aggressively, then recovers above its main descending resistance line.
The setup began after ZEC topped near $775 in November. The token then entered a long downtrend, forming lower highs through December, January, February and March.
That phase created the “lead-in” trendline, which acted as resistance for several months.
The “bump” phase came in early June, when ZEC sharply dropped from above $550 and printed a long downside wick toward the $240–$320 zone. Buyers quickly absorbed the selloff, showing that the decline may have stretched too far.
ZEC has since recovered above its 20-day EMA near $480, 50-day EMA near $476, 100-day EMA near $431 and 200-day EMA near $374. That matters because reclaiming these moving averages usually signals improving trend strength.
The key confirmation level now sits near $540–$560, where ZEC is testing the descending resistance from its recent highs. A daily close above that zone would confirm the BARR-style breakout and open the door to the 0.786 Fibonacci retracement near $650.
A stronger breakout could send ZEC toward the previous cycle high near $775. Above that, the measured upside target sits near $1,320, roughly 150% above current prices.
Bear Flag Keeps ZEC Breakdown Risk Alive
The bullish setup is not risk-free.
ZEC’s latest rebound also resembles a bear flag on the daily chart. The pattern formed after the sharp early-June selloff, with price now rising inside a small upward-sloping channel between roughly $420 and $540.
A bear flag usually shows temporary consolidation before sellers resume control. In ZEC’s case, that means the current recovery could still be a relief bounce unless bulls force a clean breakout above $540–$560.
The first bearish trigger sits near the flag’s lower trendline around $450–$470. A daily close below that area would weaken the BARR bottom setup and expose ZEC to its EMA cluster between $373 and $431.
If selling pressure accelerates, the bear flag’s measured downside target sits near $287, matching the horizontal support marked on the chart.
Therefore, ZEC’s next daily close may decide the short-term trend. A breakout above $560 would favor the 150% rally setup. A breakdown below $450 would shift control back to sellers.
