The cryptocurrency market continues to bleed, and the total market capitalization is now around $2.89 trillion. Zcash (ZEC), one of the privacy tokens daring to challenge fearful market sentiment, has seen consistent choppy price action as market forces struggle to establish control. Interestingly, a prominent market analyst with the username X, PlanD, has discovered significant bearish potential on the horizon.
Related Reading: Why Is Zcash Rising? Analysts analyze the ZEC rally and what comes next
Zcash to fall to $281 – Is the party over?
Despite its performance amid the overall crypto market correction, Zcash is struggling to overcome a formidable barrier in the $750 price zone. In the last week, the privacy coin experienced this rejection in both instances where it broke above the $700 price.
According to PlanD, the multiple rejections of the ZEC also threaten the viability of an ascending channel that began in October. Notably, Zcash has broken below the lower boundary of this channel at $672, at successive times, indicating increasing bearish pressure and a weakening of the bullish structure. If market bears assume a dominant hand in the privacy coin, PlanD projects a price drop to around $281, indicating a potential 50% price loss from current market prices. PlanD’s prediction is similar to that of analyst Ali Martinez, who has since suggested that ZEC could correct to around $325, following its difficulties in the $750 price zone.
However, while technical indicators point to an imminent price collapse, strong fundamental developments provide optimism for a continued upward price trend. These include institutional backers like Cypherpunk Technologies, backed by Tyler and Cameron Winklevoss, which recently launched a $50 million Zcash treasury strategy. Additionally, the upcoming Zcash halving event, scheduled for November 28, adds another layer of bullish undertone as an increase in token scarcity is expected to fuel demand pressure and subsequently drive prices higher.
ZEC Pricing Overview
At the time of writing, Zcash is trading at $490.52, reflecting a drastic 24.11% drop in the last 24 hours as total cryptocurrency liquidation surpassed $1.9 billion. Meanwhile, the daily trading volume has decreased by 6.1% and is valued at $2.24 billion.
However, ZEC’s monthly performance stands at a staggering 99.41%, representing the coin’s challenging bullish performance during a time when the total crypto market capitalization has dropped by 28%. In the last year alone, the privacy coin has risen 928%, highlighting a notable and sustained bullish trajectory.
With a market capitalization of $7.8 billion, ZEC now ranks as the 13th largest cryptocurrency in the world.
