At press time, Zcash (ZEC) was up 3.25% over the past 24 hours. In addition to the price rise, ZEC also saw strong participation from traders and investors, as evidenced by trading volume, which jumped over 32% to $267 million.
However, its past performance and current price action indicate that there is a risk of a possible slowdown.
ZEC Price Action Signals Possible 20% Drop
On the daily chart, ZEC looks slightly bearish, and the current level can be considered a decisive point, as it has a significant history of price reversals.
The chart shows that in February 2026, ZEC attempted a potential rebound but failed, and since then it has been in a downtrend, facing resistance from a descending trendline. In the past, whenever ZEC price reached this resistance level, it recorded a sharp decline, which now appears likely to repeat itself.
Based on current price action, if ZEC fails to break through its extended descending trendline, it is highly likely to repeat its story with a potential decline. The price could drop by more than 20%, reaching the $200 level.
However, this bearish thesis could be invalidated if ZEC breaks out of the trendline and closes a daily candle above the $260 level. Besides the price action, the technical indicator Average Directional Index (ADX) fell to 17.95, below the key threshold of 25, indicating weak momentum in the asset.
Looking at the current price action, a crypto analyst shared an article on X, noting that the $173 to $199.55 area is a key level for ZEC. If the price fails to hold this zone, it could see a sharp decline, with the next major demand zone lying between $54.18 and $79.91.
Furthermore, the expert noted that the bullish sentiment towards ZEC remains intact due to its strong privacy-focused utility, low transaction costs, and growing importance in decentralized finance and privacy-preserving payments.
ZEC investor sentiment turns bearish
Data from derivatives platform CoinGlass shows traders are following the trend as they appear to be betting on further decline.
According to the latest data, $238.9 at the bottom and $257.2 at the top are major liquidation levels. At these levels, traders built leveraged long positions worth $5.91 million and short positions worth $7.91 million. This suggests that traders are potentially expecting the price of ZEC to fall.
At the same time, some long-term security holders appear to be following the same trend, shedding part of their holdings. On April 5, 2026, ZEC spot inflow/outflow measurement showed $1.02 million worth of ZEC entering the exchange, suggesting potential preparation for a sell-off.
Final summary
- Zcash prices have been climbing, but price action suggests that ZEC risks a 20% decline if it fails to break the descending trendline.
- A derivative tool reveals that investors and traders have a bearish outlook as they appear to dump their holdings and bet on short positions.
