Zcash (ZEC) Bulls Face a Critical Challenge: From Strength to Struggle?

Zcash (ZEC) has seen fluctuating prices, with a recent spike followed by concerns about potential bearish trends. As the digital asset tests critical resistance levels, traders are closely watching its next moves.

Key Takeaways

Zcash recently reached a high of $480.76 and is currently trading around $401.41.
The market cap for Zcash is approximately $6.54 billion, with an impressive trading volume of $1.88 billion.
A recent technical analysis indicates potential bearish momentum, with prices possibly declining to key support levels.
Current market indicators suggest a balanced but cautious stance among investors.

Zcash (ZEC) Bulls Face a Critical Challenge

Current Zcash Performance

In the early morning, Zcash traded as low as $377.52 before experiencing a bullish rally that pushed its price up to $480.76. Recently, the asset has been trading at roughly $401.41, after a spike of more than 2.24%. Zcash's market capitalization stands at $6.54 billion, with a daily trading volume increasing dramatically by over 105%, now reaching $1.88 billion. There has also been a notable liquidation of $16.99 million worth of Zcash within the last 24 hours, according to Coinglass data.

Potential for Price Decline

The analysis of the ZEC/USDT trading pair on a 4-hour chart reveals a temporary negative outlook. The price may potentially test the near support level at $398.53. If bearish pressure continues, the formation of a "death cross" could occur, leading the price down to $396.26 or even lower. On the other hand, should a bullish reversal occur, Zcash could aim for the resistance at $403.85. Continued bullish movement might trigger a "golden cross," propelling the price above $405.79.

ZEC chart (Source: TradingView)

The technical indicators for Zcash reveal that the MACD line has temporarily crossed below the signal line, signaling bearish momentum in the market. If this trend continues, it could indicate the beginning of a downward movement. The CMF indicator for ZEC is at 0.09, suggesting slight buying pressure in the market, reflecting a flow of capital into the asset, though not at a very aggressive rate.

The daily Relative Strength Index (RSI) for ZEC sits at 50.93, indicating neutral market momentum. Positioned near the midpoint, it does not indicate that the market is overbought or oversold. The balance suggests no dominant bullish or bearish influence currently. Additionally, Zcash's BBP reading of -7.07 implies that bearish sentiments are currently stronger than bullish ones.

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