Zcash Plunges 33 Percent: Privacy Coin Under Massive Selling Pressure

Dramatic Price Collapse in Zcash

The crypto market showed its volatile side again at the start of the week. While Bitcoin fell to $86,000 and lost five percent within 24 hours ^[2], the privacy coin Zcash is hit particularly hard. With a daily loss of 22 percent and a weekly decline of 33 percent, ZEC records the strongest drop among major altcoins ^[1][2].

Over the last 24 hours, the price moved in a range between $351.28 (low) and $430.16 (high). The current price stands at $363.78, significantly below the previous day's closing price of $427.94 ^[1]. The market capitalization currently amounts to approximately $5.9 billion ^[1].

Massive Liquidations Burden the Market

The correction led to significant disruptions in the crypto market. Within 24 hours, positions worth more than $646 million were liquidated. Bitcoin alone accounted for approximately $185 million ^[2].

Observers cite several factors as triggers for the market correction: An exploit in the Yearn Finance yield-farming protocol, in which nearly nine million dollars in crypto tokens were stolen, caused uncertainty ^[2]. Additionally, rising yields in the Japanese bond market and a general correction in traditional financial markets, where the S&P 500 and Nasdaq also declined sharply, weighed on sentiment ^[2].

Further uncertainty was introduced by China's central bank. The People's Bank of China (PBoC) stated after a meeting with twelve other authorities that "speculation in virtual currencies has re-emerged due to various factors" and poses new challenges for risk control ^[2].

Technical Analysis Shows Bearish Structure

Technical analysis paints a tense picture for Zcash. The price trades significantly below the 20-period exponential moving average (EMA-20) at $437.28 and shows a sequence of lower highs and lower lows, confirming the short-term downtrend ^[1].

The Relative Strength Index (RSI) stands at approximately 36.5 and signals weak momentum, though it does not show an extreme oversold signal ^[1]. The width of the Bollinger Bands at approximately $138.51 indicates elevated volatility ^[1].

Critical Support Zones in Focus

Several price levels are decisive for further price development. Important support levels are located at $351.28 (current low) and $320.00 (psychological round level). Resistance levels are found at $430.16 (recent high) and at the EMA-20 at $437.28 ^[1].

The short-term forecast is neutral to bearish. A break above $437.28 would weaken the selling pressure scenario and allow a recovery toward $500 to $600. A break below $351.28, on the other hand, could lead to accelerated selling pressure and price targets around $220 to $330 ^[1]. Given elevated volatility, rigorous risk management is essential for investors.