Recently, ZEC has performed remarkably well, breaking through the key resistance level of $460, with trading volume significantly increasing and market sentiment soaring. However, from a technical perspective, this rally may face correction pressure.

The RSI indicator has surged to 84, entering the extremely overbought zone, and the price has directly pierced through the upper Bollinger Band. These signals typically indicate that the short-term gains are overextended, and market sentiment may need to cool down. Many are calling for higher target prices, but rapid increases often come with risks.

Interestingly, the current market shows clear divergence. On one hand, retail investors and some traders remain optimistic about the future trend, with enthusiasm for chasing higher prices. On the other hand, large investors and smart money may already be considering reducing their positions, and reports suggest that whales are accumulating short positions. This kind of bullish-bearish confrontation is especially common when the market is extremely hot.

Historically, severe overbought conditions in technical indicators usually cannot be sustained for long. Especially when a rapid rally breaks through multiple technical levels, many participants tend to take profits here. This does not necessarily mean a reversal is imminent, but the risk-reward ratio needs to be reassessed.

If you are monitoring ZEC or similar strong coins, it’s advisable to observe multiple timeframes and consider trading volume and capital flow to make judgments. Overbought signals in technical analysis are only a reference; actual investment decisions should also consider your risk tolerance and holding period.