Zcash (ZEC) faces a critical price test after a severe 13% weekly decline, reaching a key support level near $310. Analysis based on price patterns and derivatives data indicates that continued selling pressure could trigger a further 35% drop toward $200, while trader liquidation maps highlight a concentration of short positions betting on the downside.
The privacy-focused cryptocurrency Zcash has experienced four consecutive days of losses, culminating in a 13% drop over the week. At press time, ZEC is trading at $322, with a 24-hour trading volume down 12% to $450 million, signaling diminished market participation.
On weekly charts, ZEC is forming its fifth consecutive negative candle after revisiting the $310 zone. The asset recorded a 70% reversal the last time it reached this level, but analysts note current broader market conditions could differ.
A bearish pattern of lower highs and lower lows is visible on daily timeframes, with the price testing the $310 support. Price action analysis suggests that if this level breaks, the next major support could be around $200, representing a potential 35% decline.
Technical indicators show a lack of strong directional momentum. The Average Directional Index reads 22.32, below the key 25 threshold, while the Money Flow Index hovers at a neutral 43.
Derivatives data reveals traders are aligning with the bearish trend. According to CoinGlass data, intraday traders have built approximately $4.04 million in long-leveraged positions versus $8.99 million in short-leveraged positions around current prices. A key liquidation level sits at $317.8; a breach could liquidate the $4.04 million in longs, potentially accelerating selling.
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 $270. The expert stated a drop toward the $200 level “cannot be ruled out.”
