Key takeaways
- ZCash is one of the worst performing coins among the top 30 cryptocurrencies by market cap, down 3.5% in the past 24 hours.
- The coin could rise higher in the near term amid demand for privacy-focused cryptocurrencies.
ZEC slides as broader market recovers
ZEC, the native currency of the Zcash ecosystem, has fallen by 3.5% in the past 24 hours, making it one of the worst performing coins among the top 30 cryptocurrencies by market cap.
It is trading at $241 per coin, down from $257 recorded on Tuesday. The downward performance comes amid a decline in Zcash derivatives data.
according to Queen GlassThe open interest (OI) of ZEC futures contracts is $438 million, down from $473 million recorded on Tuesday, reflecting a lower notional value of open contracts.
A decline in the spot price during a decline in the spot price usually confirms the bearish narrative as traders expect further recovery.
Technical Outlook: Will Zcash price recover above $250 soon?
The ZEC/USD 4-hour chart is bullish but inactive as Zcash price faced rejection above the $250 psychological level.
It is currently trading below the 50-day moving average of $248, suggesting that the bulls failed to capitalize on the recent rally.
Despite this, the near-term trend is cautiously bullish as ZEC holds above the recent lows, while remaining capped below the long-term bearish resistance line.
If the bulls regain control and the daily candle for ZEC closes above $250, it will confirm the bullish breakout and open the way towards the 200-day moving average at $274, followed by the 23.6% Fib retracement level at $362.
The Moving Average Convergence-Convergence (MACD) line has turned higher above the signal line and has returned to positive territory on the 4-hour chart, indicating strengthening bullish pressure.
The Relative Strength Index (RSI) at 61 reinforces the rebound in bullish momentum without indicating overbought conditions.
On the downside, if the rejection candle holds, ZEC could fall towards the 38.2% Fibonacci retracement level at $231, followed by an uptrend line near the $200 psychological support level.
