Zcash (ZEC) Experiences a 29% Drop: Will There Be a Deeper Correction or Will Bullish Trends Emerge?

Zcash (ZEC) has faced a significant downturn, dropping 29% from its high earlier in the day. As the price approaches crucial support levels, market dynamics suggest either a deeper correction or potential recovery depending on buyer movements.

Key Takeaways

Zcash began the day trading at $679.47 but has since fallen to approximately $480.76.
The market capitalization of ZEC is currently at $7.88 billion, with a daily trading volume up over 142%.
Key support levels to watch are at $478, while resistance may be found near $482.
Technical indicators like the MACD, RSI, and BBP suggest bearish market conditions.

Zcash (ZEC) Takes a 29% Hit: Is a Deeper Correction Coming, or Will the Bulls Step In?

Main Content

Earlier today, Zcash (ZEC) was trading at a peak price of $679.47. However, it has experienced a strong bearish trend, causing the price to drop to a low of $477.53. Current data from CoinMarketCap indicates that Zcash is trading around $480.76.

ZEC's market capitalization sits at $7.88 billion, with the daily trading volume soaring over 142%, potentially reaching around $5.04 billion. Recent reports from Coinglass reveal that Zcash witnessed liquidations totaling $31.18 million in the past 24 hours.

Is Further Downside Ahead for Zcash Price?

Given the current negative trend, Zcash might approach its crucial support level around $478. If this downward trend continues, we could see the emergence of a death cross, potentially driving the price down to $476 or lower. Conversely, should a reversal take place, the price could rise and challenge the nearest resistance around $482. If bullish momentum strengthens, Zcash could break above $484.

ZEC chart (Source:TradingView)

In terms of technical analysis, the Moving Average Convergence Divergence (MACD) line is currently below the signal line, indicating bearish momentum which suggests a possible ongoing price decline. The Chaikin Money Flow (CMF) indicator for Zcash sits at -0.04, hinting at slight selling pressure in the market, although the flow of capital out of the asset is not significantly strong. A more pronounced negative value would indicate stronger bearish momentum.

Moreover, Zcash's daily Relative Strength Index (RSI) at 42.62 points to a neutral to slightly bearish market condition. If buying pressure does not increase, ZEC may either stabilize or continue to decline further. The Bull Bear Power (BBP) reading of -108.12 reflects a dominating bearish presence in the ZEC market. The overall market sentiment remains bearish, pushing prices lower; further declines may occur unless buyers choose to exert control.

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