Zcash Price Stalls in 2024: Why This Privacy Coin Faces Further Downside Risks

Is Zcash’s Downtrend Here to Stay?

ZEC’s price action has been anything but encouraging lately. The cryptocurrency is currently trading below the 50-day Exponential Moving Average (EMA), a clear sign of sustained bearish pressure. A brief stabilization around $290 offered some hope, but this level remains precarious. If Zcash fails to hold here, the next critical support lies at the 200-day EMA, which could act as a last line of defense before a steeper drop.

On the upside, the path to recovery is steep. ZEC must first reclaim the 50-day EMA and then break through a stubborn resistance zone marked in yellow on most charts. Until then, the short-term outlook remains bleak. As one BTCC analyst put it, “Zcash isn’t out of the woods yet—traders should brace for more turbulence.”

Why Are Technical Indicators Flashing Red?

The Relative Strength Index (RSI) has been flatlining since early December, showing neither bullish divergence nor increasing buying pressure. Meanwhile, the MACD lacks momentum, with no clear trend reversal in sight. Data from TradingView underscores the coin’s struggles, with liquidity heatmaps suggesting that ZEC may need to dip further to absorb remaining sell orders.

“This imbalance hints at one thing,” notes a BTCC market strategist. “The market could drag Zcash lower to ‘sweep’ lingering liquidity before any meaningful rebound.”

Could a Short Squeeze Salvage ZEC’s 4-Hour Chart?

There’s a glimmer of hope in the 4-hour timeframe. The MACD hints at waning downward momentum, and the RSI is inching toward a bullish breakout above 50. However, this potential recovery hinges heavily on Bitcoin’s performance—a reminder that altcoins rarely MOVE independently.

Liquidation levels reveal a growing cluster of Leveraged short positions, raising the possibility of a short squeeze if buying pressure emerges. But traders shouldn’t get too excited yet. As one veteran crypto observer quipped, “Hopium won’t pay the bills—ZEC needs concrete chart progress.”

What’s Next for Zcash in 2024?

The immediate roadmap is technical: reclaim the 50-day EMA in the 4-hour chart, then target the 200-day EMA. A clean break above both, coupled with a higher high, could validate a short-term recovery. Until then, ZEC remains at the mercy of broader market sentiment.

Historical data from CoinMarketCap shows that privacy coins like Zcash often underperform during risk-off periods. With regulatory scrutiny intensifying globally, 2024 could prove pivotal for the project’s long-term viability.

FAQs: Zcash’s Price Outlook

Why has Zcash’s price dropped so sharply?

ZEC’s decline reflects both broader crypto market weakness and privacy coins’ unique challenges, including regulatory pressures and shifting investor preferences toward more transparent assets.

What price levels should traders watch?

The $290 support zone is critical. Below that, the 200-day EMA NEAR $275 becomes the next battleground. Upside targets start at the 50-day EMA (~$310) and extend to $340 resistance.

Could Zcash recover in 2024?

While possible, any sustained recovery WOULD require both technical improvements and a favorable shift in market sentiment toward privacy-focused cryptocurrencies.