Zcash Double Top Signals 50% Downside Risk
Zcash has dropped nearly 30% from its seven-year high of $734.96, trading around $512 after an 850% surge since early October. On the 4-hour chart, a bearish double top at $749 and $683 with a $503.42 neckline signals potential declines. Key indicators like MACD and RSI are trending down.
A decisive break below the $503.42 support could push ZEC toward the $400 Fibonacci retracement level and even $256.41. Futures open interest fell 28% to $846 million, while the long-to-short ratio dipped below 1, reflecting traders’ bearish stance.
Despite gains in peer privacy coins such as Monero (XMR) and Dash (DASH), Zcash’s near-term outlook remains weak. A rebound above $600 is needed to invalidate the bearish setup.
Bearish
The formation of a double-top pattern combined with declining MACD and RSI indicates mounting bearish momentum for Zcash. Falling futures open interest and a long-to-short ratio below 1 reflect traders reducing bullish bets. A break below the $503.42 neckline could trigger a 50% decline toward the $256 support, while only a rebound above $600 would invalidate this outlook. In the short term, technical signals point to further downside, whereas long-term prospects depend on broader privacy coin adoption and network developments.