The price of Zcash is under pressure from selling once again after a rapid 16% drop in the past 24 hours, pulling altcoins down from the attempt to move above 400 USD.
The aforementioned rejection has delayed attempts to understand the higher levels, and the long wait may pose additional challenges for traders if market sentiment weakens again.
Zcash separates from Bitcoin.
The correlation between Zcash and Bitcoin has been decreasing over the past few days, dropping below the zero line. A negative correlation means ZEC is no longer moving in the same direction as BTC's price.
While it may initially seem neutral, it creates an unusual risk. If Bitcoin rises, Zcash may not benefit from overall market confidence.
Conversely, if Bitcoin drops sharply, ZEC may rise unexpectedly, but there is no guarantee of sustainable strength.
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The liquidation map adds another layer of caution for ZEC holders. Currently, long traders are facing increased liquidation risk, with long positions of nearly 17.49 million USD set to be revealed if ZEC drops to 300 USD or below.
This potential liquidation acts as a significant pressure point on bullish sentiment.
If the price reaches this threshold, cascading liquidations may accelerate the downward move. Such events often prompt traders to exit long positions and prevent new entries, which can create a reinforcing feedback loop that supports the bearish trend.
ZEC is trading at 339 USD and is moving around the support level at 344 USD after a significant drop from the daily highs. Rapid selling and a weak market structure suggest that further declines may occur in the near term.
If the momentum continues to drop significantly, ZEC may decline to the important support level at 300 USD. Losing this level is likely to trigger liquidation of the group valued at 17.49 million USD, which could drive the price down to 260 USD as forced selling expands.
However, if the trend changes and buyers return, ZEC may stabilize at 344 USD and attempt to recover to 403 USD. A successful breach above this level would invalidate the bearish theory and restore confidence to long-term buyers.
