Zcash (ZEC) Faces 18% Decline: Will It Stabilize, or Is the Bear Trend Set to Continue?

Zcash (ZEC) Faces 18% Decline: Will It Stabilize, or Is the Bear Trend Set to Continue?

Zcash (ZEC) has encountered a significant drop in value, experiencing a decline of 18% from its peak. As market pressures mount, investors are left wondering if ZEC can find its stability or if the downward trend will persist.

Key Takeaways

Zcash saw a price drop from $490.75 to a low of $382.44.
Currently, ZEC is trading around $398.21, with a market cap of $6.51 billion.
Daily trading volume has surged over 47%, possibly reaching $1.04 billion.
Technical indicators reveal persistent bearish momentum, with strong selling pressure highlighted by the MACD and CMF indicators.
There are indications of overselling, raising the chance of a potential short-term rally.

Zcash’s Technical Signals Float into Bearish Territory

Zcash is currently navigating through a rough patch as its price faltered from a peak of $490.75 to a significant low of $382.44. Recent pressures from sellers have driven the price back to approximately $398.21 as per current CoinMarketCap data. The market capitalization now sits at $6.51 billion, and daily trading volume has notably increased by over 47%, nearing $1.04 billion. Furthermore, Coinglass reports show a liquidation event of $22.66 million worth of Zcash within the last 24 hours.

Bearish Indicators Raise Concerns for Zcash

Technical indicators make it clear that bearish momentum is currently prevailing. The Moving Average Convergence Divergence (MACD) line, along with its signal line, rests below the zero line, suggesting that the downside pressure is likely to continue unless there is a substantial upward shift. Additionally, the Chaikin Money Flow (CMF) indicator is at -0.32, indicating significant selling pressure and capital outflow. If this negative trend continues, it confirms a weak demand for ZEC until a reversal occurs.

ZEC chart (Source: TradingView)

The latest trading patterns illustrate the ongoing selling pressure, with Zcash retracing to important support levels around $388.65. Continued decline may lead to a "death cross," potentially pushing the price below $378.22. On the opposite end, for a bullish reversal to occur, Zcash must rise to test the resistance level near $408.31. A sustained upward movement could shift ZEC’s price beyond $418.69, setting the stage for a "golden cross."

Interestingly, Zcash's daily Relative Strength Index (RSI) stands at 19.34, marking it as deeply oversold. This situation indicates strong selling pressure, which might pave the way for a short-term rebound or relief rally. Moreover, the Bitcoin Bullish Percent (BBP) value for ZEC is at -77.69, indicating extreme bearish dominance, which further hints at seller exhaustion even amid strong downward momentum.

Stay Updated on Crypto Trends

For other developments, keep an eye on SUI, which is also experiencing a downward trend. Could it revisit its previous lows?