$ZEC Technical Analysis: Bullish Exhaustion at the $300 Supply Zone – Time to Short? 📉
Zcash ($ZEC) has had an impressive run recently, but the latest price action suggests that the bulls are finally hitting a formidable wall. As of today, February 18, 2026, $ZEC is struggling to maintain its footing after testing the psychological and technical resistance around the $290 - $300 cluster.
The Technical Breakdown: Why Momentum is Stalling
Supply Zone Rejection: The $290 - $300 range is not just a psychological number; it’s a historical supply zone. We are seeing a cluster of sell orders here that previously led to significant breakdowns.
Corrective vs. Impulsive: The recent upward move is showing signs of being a corrective bounce rather than a true trend reversal. Trading volume is beginning to diverge from price (lower volume on higher prices), which is a classic signal of buyer exhaustion.
Failure to Reclaim Structure: For a continued bullish trend, $ZEC needed to flip the $310 level into support. However, the rejection near the local highs indicates that the "Smart Money" is likely looking to take profits or build short positions.
📉 The Strategic Trading Plan
If the rejection continues, we expect a rotation back toward the demand zones to sweep the liquidity resting below recent swing lows.
Entry Zone: $290.00 – $300.00 (Look for bearish candles on the 4H timeframe)
Stop-Loss (SL): $310.00 (A daily close above this invalidates the bearish thesis)
Take-Profit (TP) Targets:
🎯 TP1: $270.00 – Immediate dynamic support.
🎯 TP2: $255.00 – Key psychological floor and previous consolidation base.
🎯 TP3: $238.00 – The "Liquidity Sweep" target where buyers might re-enter.
Final Verdict: High-Probability Short Setup
While the privacy coin sector has seen renewed interest, technicals always tell the immediate story. The risk-to-reward ratio (R:R) for a short position at these levels is highly attractive.
⚠️ Risk Warning: Crypto markets are volatile. A breakout above $310 could trigger a short squeeze toward $330. Always trade with a Strict Stop-Loss and never risk more than 1-2% of your capital on a single trade.
What do you think? Will ZEC hold the $300 level, or are we heading for a correction? Let’s discuss in the comments! 👇