Zcash demonstrates remarkable resilience in a bearish crypto market, but technical indicators suggest a potential 50% correction. With an upcoming halving and repeated rejections near $750, traders closely monitor this leading privacy-focused cryptocurrency. Deciphering a paradoxical yet pivotal market scenario.
Analyst PlanD, closely followed by the crypto community, has issued a technical alert on X regarding Zcash (ZEC). According to his analysis, the privacy-focused cryptocurrency could experience a violent pullback toward $281, representing a potential 50% drop from current levels. This bearish forecast comes paradoxically as on-chain data and fundamental developments remain resolutely positive.
The price of Zcash faces a major obstacle compromising its bullish momentum. The resistance zone around $750 has systematically rejected breakout attempts for several weeks. Just last week, two attempts to break above $700 failed, reviving fears of an exhausted uptrend.
PlanD highlights a particularly concerning technical element: ZEC has repeatedly broken the lower bound of its ascending channel established since October. This channel, which had until then framed the regular rise of the cryptocurrency, now shows signs of weakness at $672. Each downside break of this structure weakens the credibility of the bullish scenario and strengthens the position of sellers.
This analysis aligns with that of Ali Martinez, another respected analyst in the crypto ecosystem, who anticipated a correction toward $325 after repeated failures around the $750 resistance band. The convergence of these bearish technical analyses contrasts sharply with fundamentals that remain solid.
Despite the technical vulnerability, several fundamental elements argue for future appreciation of Zcash. The most significant development remains undoubtedly the commitment from Cypherpunk Technologies, a company backed by the famous Winklevoss twins. The firm has unveiled a treasury strategy of $50 million dedicated to ZEC, signaling growing institutional confidence in the privacy cryptocurrency sector.
The halving scheduled for November 28 represents another major catalyst for Zcash’s price. This event will halve the issuance of new coins, creating a supply shock potentially favorable to price appreciation. Historically, the halvings of major cryptocurrencies have often preceded extended bull cycles, although exact timing remains unpredictable.
These fundamental narratives do not, however, guarantee any immediate rise. Experienced traders know that an asset can undergo violent corrections even in a favorable macro context, particularly when leverage is high and market sentiment is tense.
At the time of writing, Zcash trades at $560.52, registering a rebound of 13% up to $597 over the last 24 hours. This rise is part of a liquidations movement of shorts on the Bitcoin side. ZEC’s daily trading volume has declined by 6.1% to reach approximately $2.24 billion, reflecting increased caution among participants. The zone between $600 and $640 shows strong selling pressure. And as long as this zone is not broken, Zcash could well head to the demand zone at $300 in the coming weeks.
Yet, this recent decline should not obscure Zcash’s exceptional performance over longer time horizons. On a monthly basis, the cryptocurrency still displays a remarkable 99.41% gain, vastly outperforming a broader market down 28%. This divergence testifies to solid buyer conviction during the generalized correction phase.
Over the past year, ZEC has exploded by 928%, confirming a powerful and sustained bullish trajectory. With a market capitalization of $7.8 billion, Zcash now occupies the 13th global position, consolidating its status as the reference privacy asset. Traders are closely monitoring the key levels of $672 and the $700-750 zone to adjust their positions ahead of the November 28 halving.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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