ZEC Price Breakdown: How FVG Trading Reveals the Next Move

ZCash (ZEC) is currently trading at $335.35, down 5.65% over 24 hours, and the chart structure suggests significantly lower prices ahead. A bearish head and shoulders pattern has completed its formation, and combining this with FVG trading principles reveals compelling downside potential. This technical setup integrates Fair Value Gap (FVG) analysis—the empty price space where buyers and sellers mismatch—with classic distribution patterns to identify where momentum collapses and liquidity pools create the next leg lower.

The beauty of FVG trading lies in recognizing that price always moves into unbalanced zones before finding equilibrium. In ZEC’s case, the sell-side FVG sits directly at the entry zone, presenting traders with a high-probability confluence where distribution accelerates.

The Head & Shoulders Breakdown Meets Fair Value Gap Trading

The completed head and shoulders pattern isn’t just a reversal signal—it’s evidence that buyers failed to sustain higher prices twice. The right shoulder rejection confirms trend exhaustion. More importantly, price is now retracing into the neckline region (385–415 zone), which historically functioned as resistance during the advance. This area also contains the sell-side FVG, creating a powerful confluence.

FVG trading in this context means recognizing that the gap between supply (sell orders) and demand (buy orders) creates an imbalance. Traders who sold the breakout created a vacuum that price often returns to fill. Here, that return opportunity is unfolding at 385–415—exactly where the neckline and FVG converge. When price enters this zone again, sellers step in aggressively, pushing toward downside targets.

Entry Zone & Target Execution Through FVG Liquidity Analysis

The entry zone of 385–415 offers a controlled point to initiate shorts. This isn’t a guess; it’s where FVG trading meets structural confirmation. A sell stop entry at 415 closing daily above the right shoulder high remains the hard invalidation—a signal that the bearish thesis is broken.

From there, price targets cascade toward deeper demand zones:

• First Target (T1): 320 (intermediate demand pull)
• Second Target (T2): 250 (stronger liquidity pool)
• Third Target (T3): 180 (major support shift)
• Extended Swing Target: 90–80 (historical demand zone where ZEC found buyers before)

Each target represents a buy-side liquidity pocket where institutional demand previously dominated. FVG trading recognizes these zones as natural pause or reversal points—not destinations, but resting areas before the next directional push.

Swing Trade Discipline: Risk Management Over Direction

This setup demands patience, not day-trading reflexes. The swing timeframe rewards discipline and punishes impulse. Traders should plan for multiple pauses, consolidations, and even countertrend moves that test conviction. Partial profit-taking at each target reduces exposure and locks in gains incrementally.

The critical principle: if price reclaims and holds above 455 on a daily close, the bearish structure is invalidated. Abandon the trade without hesitation. Structure says bearish. Timeframe says patience. FVG trading execution says: follow the rules, manage the risk, and let the market confirm your analysis.