Zcash Plunges 24% as Analysts Debate Next Move: Is a Deeper Crash Looming?
Zcash (ZEC) kicked off December with a significant market pullback, experiencing a steep 24% one-day drop that positioned it among the top cryptocurrencies suffering heavy losses. This sudden downturn has ignited a heated debate among market analysts, with some warning of further substantial corrections ahead, while others remain optimistic about the privacy-focused altcoin's long-term potential despite the short-term volatility.
A Steep Descent from Recent Highs
The recent market correction saw Zcash fall to one-month lows, losing crucial support levels after an impressive parabolic rally over the last three months. In early November, ZEC had soared by over 1,775% to hit an all-time high of $750. However, post-ATH, the cryptocurrency struggled to maintain its momentum, trading within a $440-$720 range. The end of November witnessed ZEC's price failing to hold its key support area, closing below it for the first time in nearly a month. This breach led to further declines, with Zcash breaking the $400 barrier and touching a local low of $328 before a slight rebound to the $340 mark.
Analysts Divided: Bearish Warnings vs. Fundamental Strength
The recent price action has prompted bearish warnings from several analysts. Sjuul from AltCryptoGems highlighted ZEC's substantial weekly and daily price drops, noting declines of 40.2% and 24% respectively. Sjuul emphasized that Zcash had lost its uptrend after falling below the EMA200, suggesting that without reclaiming this key moving average, the cryptocurrency faces a potential breakdown to even lower support levels. Similarly, Altcoin Sherpa predicts a further 30-40% drop for ZEC, possibly reaching the $200 area, although he anticipates short-term bounces during this retracement. Conversely, Mert Mutaz, co-founder and CEO of Helius, offers a more tempered view, asserting that a correction is "normal" after Zcash's impressive 700% rally. Mutaz highlights Zcash's enduring strength as a privacy token, calling "private money the entire purpose of crypto," which he believes positions ZEC to challenge other leading cryptocurrencies like XRP in the future. Meanwhile, market observer Make Sense identifies Zcash as being at a "make-or-break" level, suggesting that holding the current range could see it reclaim the $500-$600 mid-range, while a loss of current levels could lead to a retest of the $280 or even $200 area before a potential trend reversal. As of this report, Zcash trades at $338, reflecting a 20% monthly decline amidst this critical market juncture.
