ZCash Price Prediction: Will ZEC Recover After Dipping from $750?

ZCash Price Prediction: ZEC Price Rises and Plunges; What’s Next?

ZCash has been one of the most talked-about tokens in the crypto market, impressively staging a smooth rally even amidst the largest crypto crash. As ZCash recently skyrocketed to a high of almost $740, as predicted, the community remained optimistic, expecting it to maintain its momentum and break through the $1000 mark.

However, the ZCash bull run seems to be losing steam, with the cryptocurrency dropping below $600 after touching $740. This sudden downtrend has sparked caution, with the bullish ZCash price prediction proving to be wrong. Now, all eyes are on the altcoin’s potential movements to see if this is a temporary setback or the end of the bull run.

ZEC Price Hits $740, Slips Below $600

Currently, ZEC is facing a downtrend despite having recently overpowered top players. As of press time, the crypto is valued at $550, down by a significant 7.5% over the past 24 hours. But on a weekly and monthly basis, the altcoin is up by 28% and 219%, respectively.

Earlier today, ZCash exhibited a strong performance as predicted by analyst Ali Martinez. In a recent X post, Ali provided a bullish ZCash price prediction, where the altcoin was projected to hit $750. Soon after, the cryptocurrency experienced a notable rally, briefly touching $740, marking its highest point in seven years.

However, it soon started plummeting, with its value descending along a negative trajectory. Despite this setback, its yearly gain is still at a whopping 1200%. It has also re-entered the top 20 largest cryptocurrencies by market capitalization. Boasting a cap of $9.1 billion, ZEC is now ranked 15th on CoinMarketCap.

Why is ZEC Down Today?

Notably, the current downtrend is primarily based on the profit-taking following the huge rally, as short-term traders have already taken their profits from the 1,307% rise that took place in 90 days. The on-chain analytics indicate that within 5 days, 900,000 ZEC were transferred to the exchanges, which is an indicator of selling pressure.

Moreover, those who had taken loans to purchase ZEC are experiencing a loss due to the price decline from $750 to $561. There is a possibility they will sell their holdings to minimize the loss, and that can lead to further price decline. This can consequently provoke a chain of selling that will cause the prices to drop even more.

Key Levels to Watch

The recent ZCash price rally has given rise to some technical overextension, as indicated by an RSI-7 of 95.4, which means the crypto asset is overbought. It has also finally crossed above the 200-day EMA, with a price hike from $89 to $561. Nonetheless, the huge price move could result in a pullback as Fibonacci support is at $515.91 (38.2% retracement). The MACD histogram indicates that the bullish momentum is losing strength, with a current value of +21.57.

Technically, the support zone at $550 is crucial as holding above this level could reignite upward momentum. If it fails to sustain this momentum, a severe crash could be expected. At the same time, a breakout above the resistance level of $542.69 could validate further upside, potentially hitting the much-anticipated $1,000.