Zcash nears $290 as governance turmoil and weak flows push ZEC lower
Zcash (ZEC) has fallen sharply in recent weeks and is now trading near $290 after a roughly 43% drop over the past month and about 22% in the last week. Spot and futures volumes have softened (24h spot ~ $423M, futures volume down ~20% to ~$1.14B) while open interest remains near $451M. Price action shows ZEC below the 20-day moving average, testing the daily lower Bollinger Band and printing lower highs/lows; RSI sits in the low-30s and ADX shows weak trend strength. Derivatives data points to heavier short exposure than longs, increasing risk of cascade liquidations if key supports fail. Technical levels to watch: immediate resistance at $320–$350 (mid-Bollinger/short-term averages), intraday support near $317.8, primary near $310–$290; a confirmed break below $280 could open larger declines toward $270 or lower. Recent selling follows a late-2025 rally and is compounded by governance turmoil at Electric Coin Company (core dev departures including the CEO) and ongoing regulatory scrutiny of privacy coins. Marketing and rebranding may provide temporary support, but without broader market improvement and restored governance confidence, the outlook remains weak. Traders should monitor volume, ADX, RSI and derivatives open interest, use tight risk controls, and set stops around the $310–$317 intraday band to manage liquidation risk.
Bearish
The combined reports point to a bearish outlook for ZEC. Price momentum and volume are weakening: ZEC is below the 20-day MA, trading near the lower Bollinger Band, with RSI in the low-30s and ADX indicating a weak trend. Derivatives show larger short exposure, increasing the risk of cascade liquidations if intraday supports (~$317.8 and $310) fail. Governance turmoil at Electric Coin Company and regulatory pressure on privacy coins add fundamental downside risk and reduce confidence among holders and traders. Short-term, traders can expect continued volatility with possible short relief bounces; a break below $280 would likely open a deeper decline. Long-term recovery would require improved market liquidity, clearer governance at ECC, and easing regulatory concerns—none of which are evident in the latest updates, keeping the medium-to-long-term bias negative.