- Analyst CryptoTony highlights $386 as the “make-or-break” level; a clean breach here is expected to ignite a high-volume “dirty pump” toward $440.
- Negative funding rates indicate that short sellers are heavily positioned, creating a “ticking time bomb” that could accelerate any upward move as they are forced to cover.
- ith the Federal Reserve’s interest rate decision looming on January 28, 2026, the resulting market-wide liquidity shift could be the spark that ZEC needs to decouple from Bitcoin.
The ever-volatile world of cryptocurrency trading, Zcash ($ZEC) is capturing attention once again. Renowned analyst CryptoTony recently shared an update on X, highlighting a critical juncture for the privacy-focused coin. With $ZEC trading around $382 on Bybit’s perpetual contract, Tony’s chart analysis points to a potential “dirty pump” if the price can smash through the $386 resistance level.
Elliott Waves and Support Zones
The 4-hour chart illustrates a classic Elliott Wave corrective pattern. Labeled waves (i) through (v) depict a downward impulse from a high near $530 in early January 2026, bottoming out around $330 before a modest recovery. The final (v) wave extends with a bearish arrow, suggesting further downside risk if support at $375 cracks. However, Tony remains optimistic, urging for an aggressive upward move: “Give us that dirty pump please. Break $386 and it looks good.”
This sentiment aligns with broader market dynamics. Zcash has seen a remarkable surge since late 2025, climbing from under $50 to over $500 amid renewed interest in privacy coins. Factors like enhanced adoption in DeFi protocols and regulatory tailwinds for anonymous transactions have fueled the rally. Yet, the correction phase has tested bulls, with over $62 million in short positions vulnerable to a squeeze if resistance breaks.
The FOMC Wildcard and Market Decoupling
Community reactions on X echo the anticipation. Traders like @AskGigabrain note negative funding rates, where shorts are paying longs, creating fertile ground for a short squeeze. “ZEC is decoupling from BTC while bears build shorts,” they observed, warning of FOMC-induced volatility on January 28. The Federal Reserve’s rate decision could inject uncertainty, potentially amplifying any breakout or breakdown.
For investors, the setup is intriguing. A successful breach of $386 could target $440, a strong overhead resistance mentioned in replies, paving the way for retesting $500 highs. Conversely, failure might see a retest of $330 support, aligning with the bearish wave count.
Zcash navigates this pivotal moment, traders should monitor volume and BTC correlation closely. With its zk-SNARKs technology still leading in privacy, $ZEC’s long-term prospects remain solid, but short-term action hinges on that key level. Stay tuned— the pump could get dirty indeed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
