ZCash price has dropped nearly 30% in a week, breaking key support levels, including the 50-day SMA and the $480 zone.
By Bhushan Akolkar
Editor Julia Sakovich
Updated
2 mins read
Despite the broader crypto market recovery, privacy coin ZCash ZEC $475.3 24h volatility: 6.5% Market cap: $7.85 B Vol. 24h: $841.72 M has been on a freefall, correcting nearly 30% over the past week. As of press time, ZCash is trading at another 7.5% down, losing the crucial support at $480. Experts cite on-chain data as to what happens next for ZEC.
The ZCash price party seems to be coming to an end, after today’s drop under $480. Crypto analyst Ardi reported that ZEC has fallen below its two crucial support levels: the 50-day simple moving average (SMA-50) and the $480 support zone.
As a result, ZEC will be testing its final support at the 38.2% Fibonacci retracement level. It is the same zone that helped preserve the uptrend several weeks ago. Ardi stated that multiple ZEC price closes below this level would confirm a structural downtrend and a deeper correction ahead. According to the analyst, the next target levels to watch are in the $410–$425 and $370–$380 ranges.
ZCash price breakdown | Source: Ardi
Analyst Ardi also highlighted a key two-level confirmation setup around $480. He said that a successful move back above this zone would suggest the recent breakdown may have been a liquidity sweep rather than the start of a broader downtrend.
Furthermore, the CoinGlass data shows that ZEC futures open interest has dropped over 7%, to $977 million, in the past three hours. A drop in futures OI typically marks that traders are scaling back exposure, thereby highlighting signs of a potential pullback and market uncertainty.
ZCash open interest declines | Source: CoinGlass
Data from ZECHUB shows that surging demand for ZEC as a privacy-focused asset helped drive its nearly 1,000% rally between September and October. During the run-up, the number of shielded ZEC tokens held in the Orchard pool increased sharply, reducing circulating supply and reinforcing the upward price momentum.
Shielded ZEC Pools | Source: ZECHUB
However, the Orchard pool growth has reached its peak of 4.21 million ZEC on Nov. 4. This highlights a slowdown in demand for ZEC. If the net inflows don’t resume, it would prevent ZCash price from falling further.
Earlier this week, Grayscale said it has submitted the ZCSH Form S-3 filing, calling it a key step toward launching the first exchange-traded products (ETPs) for ZEC.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
