Zcash (ZEC) recorded a 24-hour price gain of 3.25% and a 32% surge in trading volume to $267 million. Despite this recent strength, technical analysis indicates a risk of a sharp downturn, with indicators and market positioning suggesting traders are bracing for further downside.
The privacy-focused cryptocurrency Zcash saw its price rise while trading volume increased significantly. Its current technical setup, however, signals potential for a notable price decline.
On the daily chart, ZEC appears mildly bearish as it faces resistance from a prolonged descending trendline. A failure to break this resistance could lead to a decline of over 20%, potentially reaching the $200 level.
This bearish scenario would be invalidated only if ZEC closes a daily candle above $260. The Average Directional Index also indicates weak momentum, having fallen below the key threshold of 25.
A crypto analyst stated that the $173 to $199.55 zone is a critical level for ZEC. The analyst noted that a failure to hold this zone could trigger a sharp decline toward a major demand area between $54 and $80.
The analyst also highlighted that bullish sentiment for ZEC remains intact due to its strong privacy utility and growing relevance. Derivatives data shows traders are positioning for potential downside movement.
According to CoinGlass data, major liquidation levels exist at $238.9 and $257.2. Traders have built $5.91 million in long positions and $7.91 million in short positions at these levels, suggesting expectations for a price drop.
Further evidence of bearish sentiment comes from on-chain movement. On April 5, 2026, the spot inflow/outflow metric showed $1.02 million worth of ZEC moving into exchanges, which can indicate preparation for selling.
