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The price of Zcash fell sharply even as the broader market rose more than 6% today. Bitcoin, Ethereum and most of the major coins are on the rise, but ZEC is still one of the biggest laggards, more than 4% in the last 24 hours and more than 40% in the past week. This discrepancy raises an obvious question: Why is ZdCash weakening when the rest of the market is recovering?
The answer starts with the same factor that helped Zdkash excel for months.
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Zcash’s greatest strength is now its weakness
For almost most of the year, Zcash has had a negative correlation with Bitcoin. The one-year Pearson correlation coefficient, which measures how the two axes move together or independently, is close to -0.06 for ZEC.
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The negative value means That ZEC often moves In the opposite direction to BTC. This was its greatest strength in late October and November, when Bitcoin suffered while ZEC rose more than 650% in a three-month horizon.
Now that Bitcoin is growing, this same negative correlation is working against Zcash.
The 20-day EMA, which follows short-term momentum by giving more weight to recent prices, is close to the 50-day EMA. If the 20-day moving average goes below the 50-day, it will confirm a loss of strength and could extend the decline of ZdCash beyond the current weekly slippage of 40%.
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The trend that protected ZEC during Bitcoin’s weakness has now become a structural flaw.
The buying pressure falls in 97%, but the selling pressure starts to decrease
The biggest red mark appeared between December 1st and December 2nd. Exchange flows – which are a measure of purchase demand – fell from $61.06 million to just $1.74 million.
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When comparing the volume of the flow, this reflects a collapse of about 97% in buying pressure in one day. This decline indicates that traders who had accumulated intensively during the October-November rally have suddenly collapsed.
But there remains one element that prevents the chart from turning completely bearish.
The volume colors in Wyckoff show that the selling pressure has started to ease in the last two sessions. The yellow bars, which indicate that the sellers are in control, have gradually weakened.
A similar pattern emerged between October 23rd and October 25th. Soon after, buyers took control as the blue bars emerged and ZEC rose more than 230%. While the buying pressure has collapsed, the selling pressure has also fallen since yesterday, leaving the price of Zcash at a conflicting but important turning point.
On the other hand, the weak activity of buying and selling could eventually lead to the movement of the ZEC price in a specific range.
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Zcash Price Levels Article Key Points to Watch: Collapse or Stability?
It depends on avoiding ZEC For a deeper breakdown on maintaining some key levels.
The first support is located near $ 299. Losing this zone exposes the next zone around $ 210, where the previous interactions form a temporary base. A further slide could push Zcash towards $124, a level seen during the initial reset.
For the ZEC price to recover, it must recover $426, which represents a 34% upside from current levels and signals the beginning of a reversal attempt. If buyers maintain momentum above that zone, the next major ceiling remains $736, a barrier that ZEC has failed to break since early November.
Currently, the price of Zcash is at a crossroads: its greatest historical strength – moving against Bitcoin – has turned into a drag on its price, the buying pressure has collapsed by 97%, and a bearish EMA configuration is approaching. Relieving the selling pressure and regaining $426 only keeps the path to stability open.
