Zcash in Crisis: Further Downside Risks According to Technical Analysis

Zcash (ZEC) continues to suffer from significant heavy selling pressure in the market. Since reaching its peak at the end of January, the cryptocurrency has lost nearly 35% of its value. Despite the subsequent rebound, the asset remains trapped in a clear bearish structure that NS3.AI analysts suggest could lead to further downward pressure.

Persistent Bearish Pressure and Technical Breakdowns

The formation of a well-defined descending channel represents the dominant context for ZEC. Key technical indicators paint a concerning picture: the on-balance volume has experienced a significant breakdown, signaling a loss of bullish momentum. The price structure suggests that the pace of the recovery has been insufficient to reverse the ongoing negative trend. With the current quote around $317, the gap between the current price and the next support levels continues to narrow.

Distribution Signals from Major Holders

Liquidity flow analysis reveals particularly negative dynamics. Data shows a gradual reduction in whale holdings, a classic behavior preceding a downward distribution. At the same time, inflows to exchange platforms have increased, indicating that large holders may be lightening their positions. These converging signals suggest a structural deterioration of market support for ZEC.

Downside Scenarios and Critical Support Levels

Technical analysis outlines a well-defined downward path if key supports are broken. The first critical level is at $230, while a breakdown at this point could trigger further decline toward $212. In the worst case, if this last support also collapses, analysis suggests a potential extension of the bearish move down to lower levels of $100. Although these scenarios pose significant risks, it is important to monitor how the market will react to upcoming price levels.