Zcash Price Drops Below $240 In Overtime: What’s Next For ZEC?
The price of Zcash was down almost 10% in the last 24 hours. The ZEC token changed hands around $239 as bulls threatened a key support level. Is the dip a healthy strengthening exercise or the beginning of a deeper correction?
Zcash (ZEC) pulled back sharply on Thursday, falling nearly 10% from its highs near $280.
Privacy Coin drops to $239, the retreat comes amid a broader risk shift across crypto markets.
Profit-taking across the board means that ZEC's recent breakout could push the bears to key psychological support at $230.
Can Bulls Hold Support Levels Or Is Zcash Price Set For A Deeper Correction?
Why is the price of Zcash down today?
Zcash's slide from the $280 level reflects a combination of several short-term factors.
Overall, investors are buzzing around the global macro and geopolitical environment.
Bitcoin, for example, is struggling to break even above $70k, and the same sentiment is engulfing top altcoins including Ethereum, Solana, BNB, and XRP.
The key view is the gains in higher macro uncertainty.
ZEC view among the key network growth parameters
Zcash's price has shown resilience amid demand for privacy coins, recently rising to $280 amid the Zoodle milestone.
Despite the return to $239, bulls remain positive as gauges on the chain show growth in the network.
For example, the Zcash hashrate hit a new all-time high of 16.54 GS/s.
Meanwhile, sealed supply rose to 5.15 million ZEC.
The increase in packaged goods reflects the growing demand for personal transactions.
Importantly, a significant portion of ZEC has disappeared from crypto exchanges, indicating a long-term bullish outlook.
Stronger network security and increased interest in privacy-focused transactions provide a two-pronged approach to adoption and could boost the value of ZEC.
Zcash price technical picture
From a technical perspective, ZEC's daily chart suggests a mixed outlook from bearish and neutral-to-sell averages.
The current structure suggests that the risk appetite may allow a net split of up to $300.
In this case, bulls need to flip $240 into a major support base, the 50 EMA at $262 is critical.
Further reversal movement brings the 200 EMA ($281) into view.
Above these levels are $300 and the 100 SMA at $339, which could be a key resistance zone as bulls look at the $500 target.
Zcash's sharp retracement after rising to $280, therefore, gives bulls an opportunity to pull in amid a wave of weak hands.
However, if short-selling intensifies amid major cryptocurrency weakness, the coin's price may drop to $206 and then $185.
