Zcash's Decline Imminent Amid Bearish Double Top Pattern

Potential Price Drop for Zcash Amid Bearish Double Top Pattern

Zcash appears poised for a potential decline to $256, driven by a bearish double top pattern, signaling a possible significant price reduction amid weakening market sentiment.

The privacy-focused cryptocurrency, Zcash, may face a sharp price drop, analysts warn. The token surged over 850% recently, reaching a seven-year high of $734.96 on November 8. However, it has since dropped nearly 30%, currently trading at around $512, indicating growing bearish momentum.

Technical Indicators Signal Further Decline

The 4-hour chart reveals a classic bearish double top formation. The neckline stands at $503.42, with peaks at $749 and $683, often predicting price declines. Indicators like the MACD and RSI suggest a continued downward trend, with the latter not yet in oversold territory. A critical support level lies around $400, aligning with a significant Fibonacci retracement. A breach here could see Zcash plummet to approximately $256.41, about half its current value, highlighting strong bearish pressure.

Futures Interest and Market Sentiment

Market data shows a sharp decline in Zcash futures interest, dropping 28% in 24 hours to $846 million. This reflects traders selling contracts and reduced confidence, with a long-to-short ratio below 1, indicating more market participants anticipate price declines. This shift occurs despite rising demand for privacy coins due to privacy concerns and regulatory issues on transparent blockchains like Bitcoin. While peers like Monero and Dash have seen gains, Zcash's short-term outlook remains bleak despite strong performance in privacy features like zk-SNARK cryptography.