Zcash [ZEC] marked the fourth straight day of losses, bringing its weekly drop to 13%.
This continuous sell-off has not only pushed ZEC into a make-or-break zone, but traders’ positioning at this level also suggests a potential continuation of the prevailing trend in the coming days.
At press time, ZEC is trading at $322, down 3.25% over the past 24 hours. Meanwhile, market participation has dropped notably, as reflected in trading volume, which has declined by 12% to $450 million.
This drop in trading volume suggests growing fear and hesitation among traders and investors, largely due to ZEC’s historic price patterns.
Zcash price action signals 35% decline risk
ZEC appeared bearish on the weekly chart, as it was forming its fifth consecutive red weekly candle at press time. The last time the asset reached the $310 level, it recorded a strong 70% reversal.
This time, however, broader market sentiment, geopolitical tensions, and other factors are raising concerns about the likelihood of a similar rebound.
Meanwhile, on the daily chart, ZEC seemed to be forming a bearish pattern of lower highs and lower lows, with the price currently sitting at the key support level of $310.
Based on past performance, a reversal would only be possible if ZEC holds above this support; otherwise, the asset could face a significant decline.
Price action suggests that if the $310 level breaks, the next major support could be nearly 35% lower, around $200.
Looking at the price action, it appears that a bearish move in ZEC would only be possible if the price falls below $310; otherwise, the asset could see a reversal.
At press time, the Average Directional Index (ADX), an indicator that measures the strength of a trend, stood at 22.32, below the key threshold of 25, indicating that the asset currently lacks strong directional momentum.
Meanwhile, the MFI, which tracks buying and selling pressure by combining price and volume data, hovered around 43, suggesting neutral market conditions with no clear dominance from either buyers or sellers.
Traders’ eyes on short positions
From a derivatives perspective, traders appear to be following the prevailing trend. According to CoinGlass data, intraday traders are over-leveraged at $317.8 on the lower side and $328.9 on the upper side.
At these levels, traders have built approximately $4.04 million worth of long-leveraged positions and $8.99 million worth of short-leveraged positions. This suggests that traders are aligned with ZEC’s broader trend.
However, $317.8 appears to be a key support level; if the price falls below this mark, around $4.04 million in long-leveraged positions could be liquidated, potentially opening the door for further downside.
Amid this bearish outlook, a well-followed crypto expert shared a post on X, noting that if ZEC fails to bounce from the $290–$300 range, it could move toward the next support zone at $270.
A drop toward the $200 level cannot be ruled out.
Final Thoughts
- If ZEC fails to hold the $310 level, a 35% decline could be possible, potentially pushing the price toward $200.
- Meanwhile, intraday traders appear to be strongly following the prevailing trend, showing increased interest in short-leveraged positions.
