Zcash price faces fresh selling pressure after plummeting 16% in the last 24 hours, sending the altcoin down in an attempt to move above $400.
The rejection has delayed ZEC’s attempts to recover to higher levels, and the extended wait could pose additional challenges for traders if market sentiment weakens again.
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Zcash distances itself from Bitcoin
The correlation between Zcash and Bitcoin has decreased in recent days, falling below the zero correlation line again. Negative correlation means that ZEC no longer moves with the direction of Bitcoin price.
While this may seem neutral at first, it introduces unusual risk dynamics. If Bitcoin rises, Zcash may not benefit from broader market optimism.
Conversely, if Bitcoin falls sharply, ZEC may rise unexpectedly, but this does not guarantee continued strength.
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The liquidation map adds another caution for current ZEC holders. If ZEC falls below $300, $17.49 million worth of long positions are at risk of being liquidated.
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This potential liquidation represents a major pressure point for rising sentiment.
As the price approaches this threshold, successive liquidations can accelerate the downtrend. These events often cause traders to exit long positions and refrain from taking on new long exposures, contributing to a feedback loop that reinforces the downtrend.
ZEC Price Faces Resistance
ZEC is trading at $339 and is hovering near the $344 support level after plummeting from its intraday high. Sharp selling and weakened market structures suggest further declines are possible in the near term.
If the downtrend continues, ZEC may fall towards the important support level of $300. Loss of this level would likely trigger a cluster of liquidations worth $17.49 million. This could push the price towards $260 as forced selling intensifies.
However, if momentum shifts and buyers return, ZEC could stabilize at $344 and then attempt a recovery towards $403. A successful break above this level would invalidate the downside logic and restore confidence to long traders.
