The cryptocurrency market continues to bleed, with the total market capitalization currently standing at around $2.89 trillion. Zcash (ZEC), one of the privacy tokens that dared to defy the dire market sentiment, experienced steady, volatile price action as market forces struggled to take control. Interestingly, a prominent market analyst with the username X PlanD has discovered significant bearish potential on the horizon.
Related Reading: Why Is Zcash Growing? Analysts analyze the ZEC rally and its future
Zcash will fall to $281 – will the party end?
Despite its performance amid a general correction in the cryptocurrency market, Zcash is struggling to break the formidable barrier at the $750 price zone. Last week, the private coin faced such rejection on two occasions when it crossed the price of $700.
According to PlanDrepeated rejections by ZEC also threaten the viability of the upward channel started in October. It is worth noting that in the following moments, Zcash broke below the lower boundary of this channel at $672, signaling increasing bear pressure and weakening of the growth structure. If the bear market takes a dominant hand on the privacy coin, PlanD forecasts a price collapse to around $281, indicating a potential price loss of 50% from current market prices. PlanD’s forecast is similar to that of fellow analyst Ali Martinez, who has since predicted that ZEC could correct to around $325 amid its struggles in the $750 price zone.
However, while technical indicators point to an impending price crash, powerful fundamentals ensure a bullish trend of continued price growth. These include institutional backers like Cypherpunk Technologies, backed by Tyler and Cameron Winklevoss, who recently launched a $50 million Treasury Zcash strategy. Moreover, the upcoming Zcash halving, scheduled for November 28, adds another layer of bullish overtones as an augment in token scarcity is expected to fuel demand pressure and, consequently, price increases.
ZEC price overview
At the time of writing, Zcash is trading at $490.52, reflecting a drastic decline of 24.11% in the last 24 hours as the total cryptocurrency liquidation exceeded $1.9 billion. Meanwhile, daily trading volume fell by 6.1% to $2.24 billion.
Nevertheless, ZEC’s monthly performance is an astonishing 99.41%, counterbalancing the coin’s bullish performance at a time when the total cryptocurrency market capitalization has declined by 28%. In the last year alone, the price of Privacy Coin has increased by 928%, highlighting its remarkable and sustained upward trajectory.
With a market capitalization of $7.8 billion, ZEC currently ranks 13th on the list of the world’s largest cryptocurrencies.
