The cryptocurrency market continues to bleed, with the total market capitalization now hovering around $2.89 trillion. Zcash (ZEC), one of the privacy tokens daring to defy fearful market sentiment, has seen steady, choppy price action as market forces struggle to gain control. Interestingly enough, a prominent market analyst with the X username PlanD has spotted significant bearish potential on the horizon.
Related reading: Why is Zcash rising? Analysts provide an overview of the ZEC rally and what comes next
Zcash Drops to $281 – Is the Party Over?
Despite its performance amid the general correction in the crypto market, Zcash has struggled to break a formidable barrier in the $750 price zone. In the past week, the privacy coin experienced this rejection in the two cases where it climbed above the $700 price.
According to PlanDZEC’s multiple rejections also threaten the viability of an emerging channel that started in October. Notably, Zcash has broken below the lower limit of this channel at $672 on consecutive occasions, indicating increasing bearish pressure and a weakening of the upside structure. If the market takes a dominant hand on the privacy coin, PlanD predicts a price crash to around $281, indicating a potential price loss of 50% from current market prices. PlanD’s forecast is similar to that of fellow analyst Ali Martinez, who has since indicated that ZEC could correct to around $325 after struggling in the $750 price zone.
However, while technical indicators point to an impending price collapse, strong fundamental developments provide optimism for continued price appreciation. These include institutional endorsements like Cypherpunk Technologies, backed by Tyler and Cameron Winklevoss, which recently launched a $50 million Zcash treasury strategy. Furthermore, the upcoming Zcash halving event, scheduled for November 28, adds another layer of bullish undertones as an increase in token scarcity is expected to increase demand pressure and subsequently increase prices.
ZEC price overview
At the time of writing, Zcash is trading at $490.52, reflecting a drastic drop of 24.11% in the past 24 hours, while total crypto liquidation exceeded $1.9 billion. Meanwhile, its daily trading volume is down 6.1% and is valued at $2.24 billion.
Nevertheless, ZEC’s monthly performance stands at a whopping 99.41%, representing the coin’s defying bullish performance at a time when the overall crypto market capitalization has been reduced by 28%. In the past year alone, the privacy coin has risen 928%, underscoring a remarkable and sustained bullish trajectory.
With a market capitalization of $7.8 billion, ZEC is now the 13th largest cryptocurrency in the world.