Zcash price started showing signs of weakening after once again failing to break through the strong resistance zone. ZEC retreated from the range of $ 520 to $ 550 and fell to the level of $ 385. The asset, which previously rose from below $100 to $750, has put the short-term outlook under pressure.
Weakening came to the fore in the technical outlook
Market analyst Aman points out that a double top formation may appear on the daily chart. When the second attempt to rise failed in the same resistance area, the possibility of this formation became more prominent. It is considered that the price is now testing the upward sloping trend line, and if this support is broken, the $ 300 level or even lower regions may come to the fore.
The RSI, the relative strength index, also indicates weakening momentum. The fact that the indicator decreased to approximately 39 reveals that the decline in purchasing appetite continues.
Aman evaluates that the double top and falling RSI data that may occur on the daily chart may increase the selling pressure if the trend support is lost.
The data below summarizes the major levels in the recent price structure.
| Indicator | Level |
|---|---|
| current price | 385 dollars |
| resistance zone | 520 to 550 dollars |
| previous peak | 750 dollars |
| Monitored support scenario | $300 and under |
| RSI | 39 |
Optimistic expectations are maintained in the long term
Although the short-term technical outlook is weak, some investors paint a more positive picture for Zcash in the long term. Ansem, a well-known commentator in the crypto market, argues that Zcash deserves a higher value than Bitcoin due to its privacy features and more resistant nature to quantum computers.
Ansem emphasizes that Zcash has similar features to Bitcoin, in addition to offering stronger privacy and having quantum resistance.
However, Ansem also predicts that the Zcash price could drop below $200 before the next market cycle begins. The same evaluation also included the opinion that levels above $ 1,000 could be seen in the future.
Sovright launched new tools in the ecosystem
Apart from the price movement, new steps have been taken on the product side in the Zcash ecosystem. Sovright, a non-profit organization that took over from Electric Coin Company, focuses on providing solutions to some of the problems experienced by early users. Sovright is known as a structure that works to support the Zcash ecosystem.
The Argos tool developed by the organization aims to help retrieve ZECs stuck in the ZEC Wallet Lite, which is no longer supported. Chief Executive Officer Michelle Lai stated that the problem is especially seen in people who have been using Zcash for a long time, because a significant amount of assets are kept in protected addresses.
Mini dictionary: Shielded address is a type of address that helps hide transaction amount and party information in the Zcash network. This structure provides privacy, but can make access and recovery difficult on legacy wallet infrastructures.
Sovright has also launched a new mining pool on its testnet. This initiative aims to reduce mining concentration and increase the resilience of the network. The organization expects these steps to alleviate some long-standing structural problems in the Zcash ecosystem.
