Zcash breaks key trendline, risks slide to $200 after steep decline
Zcash (ZEC) has suffered a sharp sell-off across two reporting periods, erasing a large portion of its November gains and breaking key technical supports. The token fell roughly 24% in a single-day drop in early December and then plunged further in a later update — losing nearly 40% in a week and trading near $240 in the most recent report. ZEC is down roughly 53% month-to-date and about 65% from its November peak near $699. Technical damage includes a breach of a long-term ascending trendline and a close below the 200-day moving average (SMA/EMA200), plus a bearish MACD crossover, signaling negative momentum. Fundamental and market drivers cited include a broad crypto risk-off alongside Bitcoin weakness (liquidations ~ $1.6bn), weak performance across privacy coins (Monero, Dash, Horizen), and elevated regulatory pressure on privacy tokens (proposed bans, AML scrutiny in India, a DIFC trading ban in Dubai). Governance concerns intensified after a mass resignation from Electric Coin Company’s core development team in January, undermining investor confidence. For traders: the key levels are the 200-day moving average/EMA and the psychological $200 support. A clean reclaim of EMA200 with strong volume would be a constructive sign; failure to hold $200 could trigger further downside as sellers regain control. Short-term bounces are possible, but expect elevated volatility and the risk of deeper sweeps to lower supports before any sustained trend reversal. This is informational and not trading advice.
Bearish
The combined reports point to a bearish outlook for Zcash in both the short and medium term. Technical indicators are negative: ZEC has broken a long-term ascending trendline, closed below the 200-day moving average, and shown a bearish MACD crossover — all classic signs that sellers control momentum. Price has already lost a large portion of recent gains (50%+ month-to-date, ~65% from the November peak), increasing the likelihood of continued downside pressure as stop-losses and liquidation cascades amplify moves. Fundamental factors add to selling pressure: regulatory headwinds for privacy coins, weak sector performance, and governance issues after a mass resignation at Electric Coin Company, which together reduce investor confidence and bid support. For traders, the critical levels are reclaiming the EMA200 (bullish signal if achieved with volume) and the $200 psychological support (break would likely accelerate selling). Expect elevated volatility — possible short-term bounces and opportunistic longs, but greater probability of further downside or range-bound action until clear technical recovery or supportive fundamentals emerge.