Cryptocurrency Zcash fell approximately 30% from its peak of $750 in November after a sharp rise and is currently trading in a sensitive technical zone. Analysts warn that a combination of uncertain macroeconomic conditions, weakening momentum, and suspicious marketing hype may indicate an increased risk of a deeper correction.
Symmetrical triangle points to growing risk of deeper ZEC correction
On the four-hour chart, ZEC is moving within a symmetrical triangle, reflecting indecision after a previous 1,500% rise. The pattern formed after a rebound from long-term support in the form of the 200-4H EMA and allows for short-term growth to around $686. However, symmetrical triangles can break in either direction, and the current market sentiment suggests a risk of decline.
If sensitive macroeconomic conditions do not improve, ZEC could break through the lower trend line of the formation, which would technically open the way to $282. This level corresponds to the local highs from October and also coincides with the 20-week EMA, making it a significant potential support.
The break and suspected hype are pushing ZEC towards a possible 60% correction
Another warning comes from comparing ZEC’s current parabolic development with the situation at BNB in 2021. According to trader NebraskanGooner, ZEC has lost key parabolic support, which often leads to a correction of around 60%. This would shift the target zone between $220 and $280. At the same time, suspicions of a “pump-and-dump” are emerging, with some analysts pointing to paid marketing offers and fake headlines supporting the hype.
Despite the bearish signals, some influential investors remain optimistic. Arthur Hayes and the Winklevoss brothers believe in the long-term potential of Zcash and speculate on prices in the thousands of dollars. In the short term, however, technical formations and market sentiment indicate that ZEC may still face a significant correction.
