A friend recently asked me whether ZEC should be shorted or longed. Honestly, the answer to this question is a bit complicated.

ZEC is currently in a contradictory state — the overall trend is heavily suppressed, but internal small waves are lively. From a long-term perspective, there are many trapped positions and technical resistance above, making a breakout in the short term unlikely. However, if you are a short-term trader, you might find opportunities within this volatility.

The turning point occurred on November 7th. After that large bullish candle at a high level, ZEC's upward momentum began to weaken. The price broke below the 30-day moving average that was supporting the rally, and then formed an "M" pattern. This indicates that the buying strength is diminishing, and bulls and bears are entering a tug-of-war phase.

In this kind of oscillating market, identifying the right support and resistance levels is key to making profits.

Looking upward, the $605-$649 range is a tough nut to crack. Every rebound to this area encounters significant selling pressure, and breaking through effectively requires considerable effort.

Looking downward, the $330-$311 range is the recent defense line. If the price retraces to this zone, buying interest usually steps in. However, a more cautious approach is to wait until the price consolidates at a high level for a while before pushing down — entering with a small position and quickly exiting is the best strategy.

Of course, ZEC is just one example. There are other severely undervalued privacy coins in the market that are being accumulated by big players. The market in 2025 will definitely be interesting, so preparing strategies in advance and avoiding being the last to act is what truly matters.