The popular privacy coin, among the top performers earlier this year, has plunged by double digits over the past 24 hours, falling below the $1,000 psychological mark.
Many analysts now expect the asset to head further south, while some key factors suggest a bullish reversal may be just around the corner.
Back to Three Digits
Zcash (ZEC) has undergone a painful correction, losing roughly 14% of its value in the last day and currently trading around $975 (per CoinGecko). This also represents a whopping 42% collapse from the multi-year high of approximately $1,700 reached this September. Following the pullback, ZEC’s market capitalization dropped to nearly $16.6 billion, meaning it is no longer among the 10 biggest cryptocurrencies after Hyperliquid (HYPE) overtook it.
Its decline comes amid a broader market correction, yet its magnitude is surprising given Grayscale’s latest effort. The leading digital asset manager revealed that it will reinvest 100% of its ZEC ETF sponsor fees into the Zcash network across development, marketing, community, and education.
Several analysts think there is no immediate bounce in sight and anticipate further declines. X user Altcoin Sherpa expects an ultimate bottom in the $800-$900 range before a potential reversal.
Crypto Patel was even more pessimistic, advising investors to book 50% of their profits here and “trail the remaining position with a disciplined stop-loss.” In their view, the price could crash all the way down to the $500-$200 zone.
Meanwhile, the correction has negatively impacted a mysterious market participant who previously opened a 10x long on 18,000 ZEC ($17.63 million) and is now sitting on a major loss of over $2.8 million (at least on paper). The trader will be fully liquidated if ZEC collapses to around $895 unless they provide additional collateral to keep the position open.
The Bullish Outlook
Certain factors, including ZEC’s Relative Strength Index (RSI), suggest that the asset may stage a short-term recovery. The technical analysis tool, which measures the recent magnitude and speed of price changes, runs from 0 to 100, and can give traders an idea of potential reversal points.
Readings below 30 indicate that the asset has entered oversold territory and could be gearing up for a rebound, while anything above 70 is typically considered a warning for an impending pullback. Currently, the RSI stands at 29.
Next on the list is ZEC’s exchange netflow. Over the past several days, outflows have surpassed inflows, meaning that investors have abandoned centralized platforms in favor of self-custody wallets, thereby reducing immediate selling pressure.
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