Zcash shed more than 32% over the past week as the privacy-focused cryptocurrency broke through multiple technical support levels. The token traded near $365 following a 20% decline in the past 24 hours, erasing gains from a rally that pushed prices from $40 to $700 in recent months. Technical analysts now warn additional losses may follow unless momentum shifts.
What Happened: Price Collapse
ZEC lost several critical technical markers in quick succession. The asset fell below its 50-day simple moving average, the $480 horizontal support zone, and the 38.2% Fibonacci retracement level before dropping into a liquidity area near $400.
Crypto analyst Ardi flagged mounting pressure before the decline accelerated. He pointed to a failed breakout in the Relative Strength Index trend and noted that "repeated warnings of structure being broken" appeared after early support levels gave way. Ardi also cautioned that concentrated long positions amplified the selloff, stating that "5% moves were causing a cascade of liquidated long positions."
The asset continued lower to reach a second liquidity zone around $370, where Ardi closed half his short position. He identified the $297 to $311 range as the next potential target if current support fails, citing the 61.8% Fibonacci level and accumulated liquidity from prior trading.
Trading activity surged past $1 billion in volume over 24 hours. Zcash moved between $356 and $457 during that period, with the seven-day range showing a high of $585 and a low near $358, according to CoinGecko data.
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Why It Matters: Technical Deterioration
The Moving Average Convergence Divergence indicator continued to trend lower with the signal line confirming negative momentum. Red histogram bars expanded, reflecting sustained selling pressure. The Money Flow Index registered near 35, indicating persistent capital outflows while approaching levels where previous reversals occurred.
Analyst Ali Martinez questioned whether Zcash would hold or break a support zone near $440 in a recent post. That level has since failed, confirming lower lows within the bearish structure. Max Keiser expressed skepticism about the token's trajectory, stating, "The $ZEC 'pump 'n dump' is over. A trip back to $55 looks inevitable."
Grayscale recently disclosed plans to convert its Zcash Trust into an exchange-traded fund, pending regulatory approval. The proposed ETF would provide investors with exposure to the cryptocurrency without requiring direct custody of the asset.
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