Key takeaways
- ZEC is still struggling below the $477-$500 area.
- Although momentum indicators are showing signs of stabilizing, Zcash remains vulnerable to further declines as investors react to continued macroeconomic uncertainty and rising interest rate hike expectations.
Zcash (ZEC) remains under pressure on Thursday as bearish sentiment continues to grip the cryptocurrency market. ZEC is facing increasing resistance below the $500 level as investors reduce their exposure to risky assets.
The Fed’s policy stance causes a negative market reaction
The broader cryptocurrency market weakened following Federal Reserve Chairman Kevin Warsh’s comments during his first post-meeting press conference on Wednesday.
Although the Federal Open Market Committee (FOMC) kept interest rates unchanged, in line with expectations, investors reacted negatively to the central bank’s firm commitment to bring inflation back to its long-term target of 2%. The Fed’s focus on price stability suggests that policymakers are not yet ready to shift toward monetary easing.
Warsh’s comments reinforced expectations that higher interest rates may remain in place for longer. Market participants are even assigning a roughly 30% probability of interest rate hikes in the future, reviving concerns about tightening financial conditions and reduced liquidity for risky assets.
Investor confidence weakened further as the Cryptocurrency Fear and Greed Index fell to 15 on Thursday from 22 the previous day, remaining firmly within the “extreme fear” zone. The reading highlights growing caution among traders and indicates weak market participation in the near term.
ZEC Price Forecast: Zcash faces increasing downside risks
Zcash also remained on the defensive, posting three straight days of losses while trading below its 50-day moving average near $477.
The continued inability to recover this level has strengthened the downward trend and increased the possibility of a further decline.
A sustained move lower could encourage further risk-off among traders, highlighting key support areas near $434 and $376.
While the MACD histogram remains marginally positive, indicating some recovery attempts may be forming, the Money Flow Index is still in the mid-40s, indicating relatively weak buying momentum compared to Monero.
The immediate resistance level remains the 50-day moving average at approximately $477. If buyers can regain control, attention may shift towards the upper boundary of the down channel near $549.
On the downside, support is located near the 100-day moving average near $434, followed by the 200-day moving average near $376.
If downward pressures intensify, the lower limit of the descending channel near $279 may emerge as a critical support area in the medium term.
