Wyckoff theory explains Zcash surge to $742 and 50% crash to $350
Zcash (ZEC) rallied from below $50 earlier this year to a peak near $742 in November, then plunged about 53% to roughly $350 by Dec. 6, 2025, wiping market cap from over $11 billion to about $5.8 billion. Technical analysts attribute the move to the 100‑year-old Wyckoff Theory: prolonged multi-year accumulation, a markup phase beginning in September (spurred by Grayscale’s ZEC fund application), followed by distribution and a markdown phase after a double-top at $740. Price action shows bearish patterns — a three black crows formation and a retest of support near $305 (Nov 2021 high). A brief relief rally ahead of possible SEC approval of a Grayscale ZEC product is possible, but analysts warn any bounce may be a dead‑cat bounce; a break below $305 points to further downside toward the next significant support around $215. Primary keywords: Zcash, ZEC price, Wyckoff Theory, price analysis. Secondary/semantic keywords included: Grayscale ZEC fund, markup phase, distribution, markdown, support levels, dead‑cat bounce. This concise technical overview helps traders assess risk, key levels ($305, $215) and likely bearish momentum in the near term.
Bearish
The article describes a sharp reversal: ZEC surged into a markup driven by fundamental news (Grayscale’s fund application) but then formed classic distribution/top patterns (double-top, three black crows) and entered a markdown phase. Price has already fallen ~53% from the high and is retesting a critical support at $305. Technical signals (bearish candlestick patterns, distribution after a prolonged accumulation) point to continued downside risk. Historically, similar ETF/fund-driven spikes (or listings-related pumps) have produced dead‑cat bounces followed by resumed declines when buying pressure fades and early entrants take profits. In the short term, expect high volatility: possible short-lived relief rallies around news events (e.g., SEC decisions) but limited follow-through absent fresh buying demand. In the medium to long term, failure to hold $305 opens the path to lower support (~$215), signaling further bearish pressure. Traders should manage risk: consider avoiding long bias until structure confirms support reclaim, use tight stops, and watch volume and order-flow for signs of genuine accumulation versus capitulation.