While the cryptocurrency market entered the weekend with an atmosphere of continued selling pressure, Zcash (ZEC), one of the privacy-focused projects, also got its share of this wave. According to CoinStats data, the ongoing correction movement throughout the market limits investors’ short-term risk appetite. While the ZEC price has lost more than 2 percent in the last 24 hours, technical indicators indicate that the downside risks have not yet completely disappeared. The current outlook suggests caution for both short-term traders and medium-term investors.
Short-Term Technical Outlook for ZEC Price
When the hourly chart is examined, it can be seen that the Zcash price displays a weak outlook. It is stated that especially the $ 399 level is an important local support. If this level is broken downwards, it is among the possible scenarios that the price will retreat towards the $ 390 band in a short time. From a technical analysis perspective, it cannot be said that buyers have reacted strongly yet.
There is no obvious return signal in the daily time frame. If the daily candle closes at current levels or lower, a test of the $370-380 range may come to the fore in the next few days. This zone is closely watched in the market as it has worked as both support and psychological threshold in the past. Despite short-term fluctuations, the limited transaction volume is also considered among the factors supporting the downward trend.
Medium Term Risks and Other Developments in the Market
The medium-term outlook is not much different from the short term. A close below the $371 level on the weekly and monthly charts could lead to an acceleration of the selling pressure. In such a scenario, the potential for the price to retreat to the $300 region is technically on the table. Analysts emphasize that this scenario may remain valid until the end of the month.
In addition to this technical picture specific to Zcash, global developments regarding privacy-oriented cryptocurrencies also affect investor perception. Recently, there have been reports that some exchanges are reviewing their listing policies for privacy coins due to regulatory pressures. This situation puts not only ZEC but also similar projects such as Monero and Dash under pressure. On the other hand, planned technical updates for scalability and privacy improvements in the Zcash ecosystem are considered a promising element for long-term investors.
Looking at the general picture, the Zcash price has a technically fragile structure in the short and medium term. It may be optimistic to expect a strong recovery before the market-wide correction period ends. However, both critical support levels and long-term developments on the project side indicate that ZEC should not be completely ignored. At this point, investors need to pay more attention to risk management than ever in this period when volatility is high.
