Zcash (ZEC) Stumbles 18%: Can It Find Its Footing, or Is the Downtrend Far From Over?

• An 18% drop has pushed Zcash to trade around $398.
• ZEC’s daily trading volume has surged by over 47%.

The bearish wind within the market has triggered the crypto assets to trade in the red zone, losing momentum. With the Fear and Greed Index value at 43, the broader sentiment is neutral, and the market cap has lost 2.22% in value. Among the pack of altcoins, Zcash (ZEC) has posted a steady and solid slip of over 18.37%.

In the morning hours, the asset was trading at a peak level of $490.75. As the bears took control of the ZEC market, the price retraced to a bottom of $382.44. Upon the active bearish pressure intensifying, the price movement could see its former lows. As per the CMC data, at press time, Zcash is trading at the $398.21 range. 

Besides, ZEC’s market cap is resting at $6.51 billion, with its daily trading volume having increased by over 47.07%, likely touching the $1.04 billion mark. The Coinglass data has reported that the market has experienced an event of liquidation of $22.66 million worth of Zcash during the last 24 hours.

Zcash Technicals Turn Negative as Bearish Momentum Flashes

The MACD line and signal line of Zcash are settled below the zero line, which indicates that bearish momentum is dominating. Unless it starts shifting upward, the downside pressure is likely to persist and may face resistance. Additionally, ZEC’s CMF indicator at -0.32 suggests strong selling pressure. The capital is flowing out, and if the value stays deeply negative, it confirms bearish momentum and weak demand, unless a reversal starts to form.

ZEC chart (Source: TradingView)

The recent trading pattern revealed the downside pressure, with the Zcash price retracing to the support at $388.65. Continued bearish correction might initiate the death cross to unfold and send the price below $378.22. Conversely, the asset needs to move up and test the resistance at around $408.31 to trigger the bullish reversal. An extended upside pressure could take the Zcash price above the $418.69 range, likely inviting the golden cross to emerge. 

Zcash’s daily RSI is staying at 19.34, pointing to its deeply oversold zone. There is intense selling pressure and exhaustion among sellers. As the trend is bearish, it raises the possibility of a short-term bounce or relief rally. Furthermore, the BBP value of ZEC at -77.69 signals extreme bearish dominance, with the price trading below. Such a deeply negative outlook reflects strong downside momentum, though it can also imply seller exhaustion.

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