Privacy coin ZEC has recently experienced a noticeable correction after breaking through a key resistance level. The price fell below the secondary support level and is currently oscillating around $510, which coincides with the liquidity accumulation zone formed in November—this coincidence is worth noting from a technical perspective.

As long as the price remains above $475, it is still within a healthy correction range. Only if multiple timeframes simultaneously break below this area will a reassessment of the strategy be necessary. At present, there are several signs of recovery, making it a good opportunity to increase positions. Personally, I have already taken profits earlier, and my breakeven point is still well below the current price, which keeps my mindset relatively calm.

The core of trading is actually quite simple—go long at support levels, go short at resistance levels, and avoid counter-trend operations. Interestingly, reliable technical divergences have once again provided clear early warnings before a sharp price drop, indicating the effectiveness of these indicators. Currently, we are waiting for the next confirmation of the trend direction.