Zcash’s price is facing fresh selling pressure after plummeting 16% in the past 24 hours, with the altcoin falling from an attempt above $400.
This rejection has delayed ZEC’s attempts to regain higher levels, and an extended waiting period could create further difficulties for traders if market sentiment weakens again.
Sponsored Sponsored
Zcash withdraws from Bitcoin
The correlation between Zcash and Bitcoin has been declining in recent days and is below the zero line. A negative correlation means that ZEC is no longer moving in tandem with the BTC price direction.
Although this may seem neutral at first, it introduces unusual risk dynamics. Even if Bitcoin rises, Zcash may not benefit from the overall market optimism.
Conversely, if Bitcoin plummets, ZEC may rise unexpectedly, but there is no guarantee of sustained strength.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The liquidation map adds further alarm for ZEC holders at this time. Long traders face increased liquidation risk, with nearly $17.49 million of long contracts at risk if ZEC falls below $300.
Sponsored Sponsored
The possibility of such a liquidation is a major pressure point for bullish sentiment.
As prices approach this threshold, chain liquidations can accelerate the decline. Such events often encourage traders to exit long positions and discourage new long exposures, contributing to a feedback loop that strengthens bearish momentum.
ZEC price faces resistance
ZEC is trading at $339 and is hovering around the $344 support level after falling sharply from intraday highs. The sharp decline and weakening market structure suggests further declines are possible in the near term.
If the bearish momentum continues, ZEC could fall towards the important support at $300. Losing this level could trigger a $17.49 million liquidation cluster. This could intensify the forced selling and push the price down to $260.
However, if momentum changes and buyers return, ZEC could stabilize at $344 and attempt a recovery towards $403. A successful breakout above this level would invalidate the bearish argument and restore confidence among long traders.
