Zcash Surges on US-Iran Ceasefire but Technicals Warn of Potential Bull Trap

Zcash (ZEC) led a broader rally in privacy-focused cryptocurrencies on Tuesday, climbing more than 30% to reach $336.50. The surge followed an announcement by President Donald Trump regarding a two-week ceasefire deal with Iran, which sparked a relief rally across global risk assets. The move was mirrored by other privacy coins, with Monero (XMR) and Dash (DASH) gaining 3% and 8%, respectively. However, technical analysts warn that the current price action may be a 'bull trap,' drawing parallels to the 2021 bear market where sharp rebounds were met with prolonged declines. ZEC is currently testing a descending trendline resistance near its 0.5 Fibonacci retracement level of $370. While a decisive breakout could potentially propel the asset toward $1,200, failure to clear this resistance may trigger a pullback toward the $197–$200 support zone, representing a potential 40% correction. Liquidation heatmaps further indicate a heavy concentration of long positions below current prices. Approximately $50.56 million in cumulative long leverage is at risk if the price drops below $260, compared to only $3.81 million in short liquidations above $380. A critical near-term level to monitor is the $305–$306 range, where a significant cluster of leveraged positions resides, potentially acting as a magnet for price volatility.