Recently, ZEC's performance has been a bit heartbreaking. Just yesterday, I was optimistic about it taking off, but today it got slapped in the face by technicals—it's not that it didn't rise, but it surged too fiercely, to the point that it makes people nervous.

In the past two days, ZEC has surged by 14%, just reaching $513. At first, this rally seemed quite comfortable, but upon closer inspection of the candlesticks and indicators, risk signals are emerging one after another.

The three most obvious issues, which are easy to spot:

First, the upper Bollinger Band has become a hard ceiling, and the price simply can't break through. This indicates that many are selling at the $513 level.

Second, the RSI has entered the overbought zone, and its value is starting to plateau. Meanwhile, the KDJ just formed a death cross, which is a typical short-selling signal.

Third, and most worth noting—trading volume has plummeted by 33%. This is deadly. A sharp rise combined with shrinking volume essentially means funds are quietly withdrawing. In simple terms, those rushing in now are likely just pushing up for the big players who have been lurking.

The candlestick chart has formed a "flat head top" pattern, with $518 acting as a short-term ceiling. If it can't break through, it’s very likely to be knocked down.

But it must be clarified—ZEC's long-term fundamentals are still okay. From multi-timeframe indicators, the EMA120 slope remains steady, and the bullish alignment hasn't been broken. The issue is short-term, which requires a round of consolidation and a pullback.

Based on this analysis, the trading strategy should be:

**If you're fully invested now, immediately cut your position in half. Don't bet on it continuing to rise.**

**Be patient and wait until it drops back to around $460 before gradually adding. This way, your cost basis is lower, and you'll feel more at ease.**

**Set your stop-loss clearly, above $515. In case of a false breakout, this can at least protect most of your principal.**

Technicals don't lie. The market is constantly speaking the truth through candlesticks and volume. Chasing the high at this level increases the risk of loss. In the short term, either wait for a pullback or wait for time to pass and digest the move. There will always be opportunities in the market, but this is not the best time to go long.