ZCash drops sharply under market pressure, will the support zone $400 hold steady?

Although Bitcoin (BTC) has recovered slightly after a sharp decline, ZCash (ZEC) still hasn’t regained what was recently lost.

According to the latest report from Coinphoton, ZCash has the potential to rise to $605 if it successfully breaks out of the downtrend channel. Another report also indicates that as long as the demand zone $382-$395 is maintained, ZEC’s recovery prospects remain optimistic.

However, bullish momentum has shown signs of stalling in recent days, though it has not completely disappeared.

The recovery opportunity for ZCash still exists, but the overall market sentiment is putting pressure on altcoins.

Poor performance of the security coin group, notably Monero (XMR) and Dash (DASH), which have respectively decreased by 0.89% and 14.5% over the past four days, partly explains ZCash’s weakness.

ZCash continues to consolidate support $400

On the daily chart, breaking above the local high of $409.3 on 12/9 confirmed a positive structural trend change. Additionally, the $410 area is also an imbalance zone on this timeframe since late November, currently serving as a stable demand zone.

Source: TradingViewOBV has started to rise again, while the RSI indicator also shows momentum gradually shifting to a positive direction.

Source: TradingViewConversely, on the 1-hour chart, the downtrend still dominates. OBV reflects increasing selling pressure since Friday, 12/12.

Risk of breaking the $400 support zone?

So far, the psychological support zone $400 has been maintained, but repeated tests have weakened it.

In the past week, this support zone has been challenged three times. With strong selling pressure on lower timeframes, the risk of a breakdown is entirely possible.

Trader recommendation – wait for confirmation signals before buying

Investors should be patient, waiting for lower timeframes to align with the larger timeframe trend before trading in the main direction. For ZEC currently, breaking above the resistance $425 and retesting this zone will open up attractive buying opportunities.

Additionally, traders should remain neutral until the overall market sentiment and capital inflow into Bitcoin show signs of improvement, as BTC is currently facing significant selling pressure.

Mr. Teacher