Zcash Defies Gravity Post-Grayscale Surge - But Storm Clouds Gather
Zcash rides Grayscale wave but technical cracks emerge
The privacy coin's resilience faces its toughest test yet
Grayscale's endorsement sent ZEC flying - now reality bites hard. Price action holds above key support levels, but volume tells a different story. Thin liquidity and fading momentum paint worrying picture for short-term bulls.
Warning signals flash across trading screens
Technical indicators scream caution while fundamentals struggle to keep pace. The 'privacy premium' narrative faces renewed regulatory scrutiny just as institutional interest peaks. Classic crypto dilemma - run with the institutional hype or heed the technical red flags?
Market makers watching institutional flows like hawks while retail traders chase yesterday's momentum. Another case of Wall Street discovering crypto right as the music stops? The charts don't lie - but in crypto, sometimes they just take longer to tell the truth.
Zcash price has become overbought
Another reason the Zcash price may crash soon is that it has become highly overbought. The Relative Strength Index has moved to the extreme level of 82, while the Stochastic Oscillator has moved to over 89. Assets typically plunge when they become highly overbought.
Most importantly, the coin is now in the markup phase of the Wyckoff Theory. This phase is followed by distribution and then markdown, where investors sell their assets to book profits.
Therefore, if this happens, the ZEC price is likely to experience a strong reversal in the near term. If this happens, it may crash to the critical support at $100, which is about 60% below the current level.
