Zcash Falls 15% as Selling Pressure Builds
Zcash (ZEC) fell about 15% in 24 hours, moving below $1,100, as stronger-than-expected US inflation weighed on crypto markets. The CPI reading was 3.7%, against a 3.6% forecast, while Bitcoin dropped 3% and added to pressure on altcoins. Earlier, Zcash had fallen roughly 6% in a session, trading near $1,094–$1,111. Grayscale’s Zcash-focused fund, ZCSH, recorded $3.68 million in inflows on Wednesday, but that buying has not reversed ZEC’s decline. Analysts are divided: some see prices near $1,000 or below as a buying opportunity, while one forecast a possible short-term move towards $900 before a rebound towards $1,600. Zcash’s RSI has fallen to 30, signalling potentially oversold conditions, but recent exchange inflows exceeding outflows point to continued selling risk. Traders are watching $1,115; a sustained four-hour close below it could expose support near $1,050 and $1,000, with $888 as a deeper conditional target. ZEC remains below its 50- and 200-period EMAs near $1,242 and $1,264, making a move back above that resistance zone important for improving the outlook.
Bearish
The immediate impact on ZEC is bearish: the sharp 24-hour decline, broader market weakness after hotter US inflation data, and exchange inflows exceeding outflows all point to near-term selling pressure. A sustained break below $1,115 could put support near $1,050 and $1,000 at risk, with $888 a deeper conditional level. ZEC is also trading below its 50- and 200-period EMAs, leaving overhead resistance in place. However, the RSI at 30 suggests oversold conditions, and analyst calls for a buying opportunity or a rebound could attract dip buyers. The $3.68 million inflow into ZCSH is a positive demand signal, but one session of fund buying has not offset spot-market weakness. In the short term, volatility and downside risk appear elevated; a sustained recovery would require buyers to defend support and reclaim the EMA resistance zone. Longer term, the correction alone does not establish a lasting trend reversal, but continued net exchange inflows and failure to regain resistance would keep the outlook pressured.