Zcash Price Plummets 24% as Key Support Levels are Breached

Zcash (ZEC) faced a significant drop of 24% in early December, breaking through crucial support levels and the EMA200 moving average. Analysts caution that further declines could occur, although the long-term outlook for Zcash and its privacy-focused fundamentals remain promising.

Key Takeaways

Zcash (ZEC) price dropped by 24% amid a broader cryptocurrency market correction.
The cryptocurrency fell to one-month lows, losing multiple key technical support levels.
Analysts predict potential further declines but maintain a long-term positive view on Zcash's potential.
The market is experiencing heightened volatility, which may lead to short-term price recoveries.

Zcash Price Plummets 24% as Key Support Levels are Breached

Main Content

In early December, Zcash (ZEC) experienced a sharp drop of 24%, marking a significant pullback that affected numerous major cryptocurrencies as the overall market underwent corrections. According to market data, Zcash’s price fell to lows not seen in a month after a late Sunday market downturn caused it to breach several crucial technical support levels.

Following a notable rally that saw Zcash reach its all-time high in early November, the cryptocurrency faced a setback. It had enjoyed a three-month surge prior to this recent pullback. However, just days before this crash, Zcash had been trading within a clearly defined range, which came to a halt after the late-November correction that saw the price close below a key support region for the first time in almost a month.

Zcash

The decline in Zcash’s price placed it as the biggest loser in the current market crash, showing a 33% drop this week alone and 19% within the last 24 hours. It is now trading around $360, which is more than 50% off its November peak.

Market analysts observed that Zcash registered some of the largest daily and weekly price declines among monitored cryptocurrencies. It fell below its EMA200 moving average after a “perfect bearish retest followed by a strong rejection” last week. Analyst Sjuul suggested that without reclaiming the key moving average, Zcash could experience additional declines towards lower support levels.

Market analyst Altcoin Sherpa noted that further declines for Zcash are likely after it lost a vital support level, although he commented that there might be short-term price recoveries during any retracement periods.

Mert Mumtaz, co-founder and CEO of Helius, remarked that a price correction following a significant rally is typical and mentioned that Zcash “looks great” on longer timeframes. He emphasized that the idea of privacy is central to cryptocurrencies, indicating that Zcash could become a strong competitor to other leading coins in the future.

Furthermore, a pseudonymous analyst known as Make Sense highlighted that Zcash hit a critical technical level after dropping to its first significant support area below the established November range. This analyst believes that if Zcash can maintain its current levels, there is potential for recovery back to mid-range prices. On the other hand, if the support fails, it could lead to a retest of lower support levels before a possible trend reversal occurs. He stated, “This is where market makers decide the next trend: bounce early → mid-range rally or deep sweep → full trend reversal. Regardless, volatility is expected to spike.”

Overall, the cryptocurrency market has experienced widespread declines, with multiple digital assets reporting losses during this timeframe.