Zcash Faces Rejection: Should You Buy ZEC?

Zcash’s valuation and price trend are quite complicated as taking support from the $85 range and getting hammered at higher levels only indicate a negative outcome. After hitting $318 in May 2021, ZEC has lost significant market value; it jumped around 270% to a fresh low of $85.77 and is spiraling into a narrow rejection zone.

Zcash indicates a poor potential to hold on to its achieved gains and quickly succumbs to profit-booking, only to be stopped by its long-term support level of $85. Under such a negatively dominated price trend, ZRC is all-set to face a lot of flak before making big into the crypto world. 

Zcash crypto value heads downwards, but trading above its 200 DMA curve highlights some potential to recreate a positive environment for ZEC tokens. A minor dip was witnessed near the 200 DMA curve, but buyers quickly took advantage of this buying opportunity.

On the contrary, if support moves up from $85 to the $130 level, the 200 DMA curve may take support and slowly rise. Click here to find out more about the future of Zcash.ZCASH Price Analysis Chart

Zcash price trend on some points highlights strength but at the same time signs of weakness too. The complicated trends showcased at different time intervals pose a challenging scenario in determining the strength or weakness of this cryptocurrency. As Zcash crashed from $210 in mid-march 2022, RSI dropped from overbought zones to mildly positive zones.

Since buyers took this recent dip positively, the negative sentiment seems to have subsided in the short term, but ZEC will have to breach the $200 level to remain positive. Looking at the transaction volumes, it is clear that there has been a significant decline since the beginning of 2022.

As regulations for cryptocurrencies become strict, one needs to be aware of its impact on the crypto space. Zcash indeed has the potential to reach $400 in the long term, but such a feat would only be possible if the sentiment on Zcash remains aligned on the positive side.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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