Zcash (ZEC) Price Drops Below $225
Zcash (ZEC) price fell below $225 on Tuesday. It dropped 17% in the last 24 hours. This made it the biggest loser in the crypto market. The Relative Strength Index (RSI) shows ZEC is overbought and may fall further. More traders are selling ZEC derivatives, signaling weak market sentiment.
Decline in Interest for Zcash
Zcash lost retail interest after reaching a four-year high of $298 on Saturday. Data from CoinGlass shows ZEC futures Open Interest (OI) dropped 15% in 24 hours to $275.49 million. A fall in OI means traders are reducing their positions or closing them. This points to a risk-off mood among investors.
Long liquidations in the last 24 hours hit $3.57 million. This is much higher than $601,710 in short liquidations. It means more bullish traders were forced out. Sell-side pressure is growing in ZEC derivatives.
Technical Outlook: Could ZEC Fall to $200?
Zcash lost nearly 10% on Tuesday and about 14% this week. It failed to break the $300 resistance level. This triggered a correction from the 78.6% Fibonacci retracement at $295. This level is based on the price move from the May 12, 2021 high of $372 to the July 5, 2024 low of $16.
After six weeks of gains, ZEC now trades below the 61.8% Fibonacci retracement at $235. A weekly close below $235 could push ZEC toward the $200 support. The next key support is the 50% retracement at $193.
The RSI on the weekly chart is 79 and falling. This shows buying pressure is easing. Bulls may be selling or waiting. The MACD indicator still rises, showing some demand remains.
If ZEC holds above $235, it could bounce back and test $300 again.
