The popular privacy coin was on a tear earlier this month, rising to a ten-year high of almost $1,700. However, over the next few days, the bears stepped in, and the situation has only worsened in the past 24 hours.
Currently, ZEC trades just north of $1,400, and many market observers believe the price has yet to plunge much further.
X user Ardi said he remains bullish on ZEC but added he won’t pretend losing $1,420 wouldn’t matter in this phase of price discovery. The analyst assumed that losing this support (as it did) might lead to a sweep toward $1,250 and below, “regardless of where I think Zcash goes this cycle.”
He also noted that it’s easy for people to say they will buy a correction while the price is rallying, yet when it actually starts dumping, some become convinced it has much further to fall.
“They get the lower price. Then they lower their bids again,” Ardi concluded.
Nick O’Neill also spotted the asset’s pullback, saying “it feels good.” The analyst emphasized that going straight up is never healthy, and after such an astonishing bull run, it might be time for ZEC to lose some steam.
“I’m frankly hoping there’s an opportunity to buy ZEC at $1K or lower,” the X user stated.
The privacy coin has indeed posted a major rally over the past year, with its price exploding by about 2,000% during that period. Key catalysts for the upswing include the launch of Europe’s first ZEC ETP, along with other factors you can see here.
Meanwhile, the token’s correction coincides with some whales starting to offload their bags. Lookonchain revealed that the investor known as Oxf562 sold 25,001 ZEC (worth over $37.8 million), which they purchased two months ago at an average price of $425, realizing a profit of more than $27 million. Such a development may spark panic among smaller players, causing them to dump tokens too and trigger a deeper pullback.
X user Crypto Patel recently spotted the formation of a cup-and-handle structure, suggesting that the rise to the $1,600-$2,000 range might have marked the local top.
The analyst then claimed that ZEC has started showing signs of “extreme extension from a psychological perspective,” predicting a potential slump to under $500 in the next 1-3 years. Moreover, they envisioned a crash to $200 if the long-term structure completely reverses.
For his part, Crypto with Haris ₿ said he feels sorry for the ZEC “fanboys.” The analyst believes the asset has already reached its cycle top and forecasts a dip toward $1,000. He also revealed he made over $60,000 in profit on the long, then opened a short position and witnessed the major hype surrounding ZEC.
“My timeline became filled with ZEC holders saying ZEC will go $5K, then $10K, then it will compete with Bitcoin. This is the problem with fanboys. They don’t trade the market; they trade the hype. They follow news, narratives, and green candles, but they never learn what happens after the hype is over. I have seen these cycles many times. Sometimes the best time to sell is exactly when everyone becomes sure it can only go higher.”
The post Zcash (ZEC) Plunges 12% Daily: Healthy Correction or the End of the Rally? appeared first on CryptoPotato.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
