Key Support Zone at $331–$328 in Focus

Key Insights:

• ZEC breaks key support at $380, shifting focus to $331–$328 as the next demand zone.
• Double-top pattern forms with $301 neckline; targets $164 and $117 if breakdown continues.
• Funding rates remain negative, confirming strong bearish sentiment among short-positioned traders.

Zcash (ZEC) fell by 9%, breaking below the $380 level that previously acted as support. The move came with strong selling pressure and clear downward momentum on the 4-hour chart. As of now, ZEC was trading around $381.98, down 13.2% in the last 24 hours and over 24% in the past week.

Price action confirms the shift in structure, with $380 now acting as resistance. Volume increased during the decline, and indicators such as the MACD and RSI continue to lean bearish. MACD shows a downward crossover, while RSI has dropped to around 25. This puts ZEC in oversold territory, but there is no signal of a reversal yet.

Focus Shifts to $331–$328 Support Zone

Traders are now watching the $331–$328 range. This zone is being seen as the next possible support, where buy orders may begin to appear. If the price holds here, a short pause or bounce could follow. The response in this area will be important to track over the next few sessions.

If this support does not hold, attention will likely move toward the $300 level. This aligns with the neckline of a possible double-top pattern seen on the daily chart. A clean move below $328 would weaken the structure further and increase the risk of another leg down.

Larger Pattern Develops on Daily Chart

On the higher time frame, a double-top pattern has started to form. The first peak was around $775, followed by a second top near $555. The neckline is near $301, which was the low from November. A breakdown under this level could push ZEC into a deeper decline.

Based on the pattern, two possible targets have been outlined. The first sits near $164, while the second is around $117. These areas align with the 1-year and 5-year moving averages, currently at $143 and $90. These are being tracked by many traders for possible reactions.

Funding Data Confirms Bearish Bias

Funding rate data from Coinglass shows that short positions have remained in control. The OI-weighted funding rate has stayed negative since early November, with traders paying to hold shorts. This supports the overall bearish trend seen in price.

ZEC reached a high near $770 in November but has trended lower since. Although a few short-term positive funding spikes were recorded, they were quickly reversed. As one market watcher noted,

 “We can try to trade supports, but it’s hard to estimate volatility or the next move.”

A price gap around the $95–$97 level remains open from a past move. If the current trend continues, this area may be revisited, especially if new highs are not reached during this cycle.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.