Why Did Zcash Crash Today? Will $ZEC Price Recover in December

Zcash Crash 20% Overnight: Can $ZEC Recover? Full Price Prediction

The crypto market witnessed one of its most painful corrections today. The Zcash Crash wiped out almost 20% of its value in just 24 hours, pushing the price down to $363.93. 

Many investors are now asking: Why is $ZEC price falling today? Will it recover? And what do experts predict next?. This article breaks everything from technical analysis to drop reasons and prediction.

High-Leverage Losses Deepened the Zcash Crash Of 20%

One of the biggest reasons behind the sudden Zcash price crash came from a huge leveraged trade that went wrong. According to Lookonchain, a well-known blockchain analytics platform, a trader with the wallet 0xCF90 went long on 20,386 ZEC worth $7.3 million only nine days ago. 

As the crypto market crashed, this position moved into a huge loss of over $4.4 million. To stop his position from being liquidated, the trader deposited $1.5 million USDC into Hyperliquid just two hours ago.

This incident spread fear across the industry and added pressure on asset’s price.

Why Did Zcash Crash Today? The Full Breakdown

The 20% drop in just 24 hours did not happen alone. There are several strong $ZEC price drop reasons that hit the asset at the same time.

1. Entire Crypto Market Turned Red: Bitcoin fell below $90,000 and Ethereum dropped under $3,000. The total crypto market cap slipped below $3 trillion, a major psychological level. This total bloodbath led to the Zcash crash today.

2. Liquidity Wipe-Out Across the Industry: Coinglass reported:

• 221,584 traders liquidated in 24 hours

• $638.07 million forced liquidations

This shows how heavily leveraged the market was, fueling major altcoin breakdown.

3. Crypto Fear Index Dropped to Extreme Levels: Investor sentiment fell to 24 (Extreme Fear) ahead of Fed Chair Jerome Powell’s speech.

4. Support Levels Broke: As per $ZEC price analysis, it lost the $480–$500 support zone, which was its strongest multi-week support. When such a level breaks, sellers take full control, which is exactly what happened today.

Technical Chart Analysis: The Trend Is Still Weak

Zcash crash has been moving in a clear downtrend for the past week. The TradingView chart shows lower highs and lower lows, a pattern that usually indicates heavy selling pressure. 

The MACD indicator is also deeply bearish, with longer red histogram bars showing strong downward momentum. Currently, it is sitting near the $350–$360 support area. But unless the token climbs back above $390–$400, the trend will remain weak.

This analysis matches what the market is seeing across privacy coins and other altcoins affected by the wider industry breakdown.

Zcash Price Prediction December and 2026 Targets

Analyst Crypto Patel shared a very clear outlook on X based on the chart and price behavior. He told traders not to long for ZEC above $700, calling it a risky FOMO zone. 

With the coin now around $360, down nearly 50% from its $700 entry warning, his prediction has proven correct.

Short-Term (Next 1–3 Weeks): Bounce Likely

Because it is oversold, a bounce to $400–$450 is possible. However, this is only a relief rally, not a full recovery.

Mid-Term (2–4 Months): Drop Toward $200 Possible

If Zcash crash cannot hold above the $450–$480 zone, it may slowly drop toward $220–$200. This view supports Patel’s warning that more downside is possible if market volatility continues.

Long-Term (2025–2026): Recovery Can Happen

Privacy coins often recover strongly once the market becomes stable again. If this drop finds a bottom near $200, the next bullish phase could lift ZEC crypto price prediction back into the $400–$600 range by 2026.

Conclusion: Is Recovery Possible?

Yes, but slowly. As per my Zcash crash technical analysis, a small recovery may come soon, but the overall trend will stay weak unless it breaks above key resistance levels. Traders should note that long-term recovery is possible, but only if the market stabilizes first, and crypto fear and greed index move greed direction.

Disclaimer: This article is for informational purposes only and is not financial advice. Always do your own research before making any investment decision in the cryptocurrency industry.