At the time of writing, Zcash (ZEC) increased by 3.25% in the last 24 hours. In addition to the price increase, ZEC recorded strong participation from traders and investors, which was also reflected in its trading volume, which increased by over 32% to $267 million.
However, past performance and current price action suggest that there is a risk of a possible pullback.
ZEC price action suggests a 20% decline is possible
On the daily chart, ZEC It is showing a slight downtrend and has a history of strong price reversals, so the current level can be considered a bullish or breakout point.
The chart shows that in February 2026, ZEC attempted a potential recovery but failed and has been in a downtrend ever since, facing resistance from a descending trend line. In the past, ZEC price fell sharply when it reached this resistance level, and this decline now looks likely to be repeated.
Based on the current price action, if ZEC cannot break the long-term descending trend line, there is a high chance it will repeat its history with a potential decline. It could see a price drop of over 20% and reach the $200 level.
However, this bearish thesis could be invalidated if ZEC breaks the trend line and closes the daily candle above the $260 level. Alongside the price action, the technical indicator Average Directional Index (ADX) fell below the 25 key threshold to 17.95, indicating weak momentum in the asset.
Looking at the current price movement, crypto analyst He shared a post on X, stating that the region between $173 and $199.55 is an important level for ZEC. If the price fails to hold this zone, it could see a sharp decline as the next major demand area lies between $54.18 and $79.91.
Additionally, the expert noted that bullish sentiment towards ZEC remains intact due to strong privacy-focused service, low transaction costs, and growing interest in decentralized finance and privacy-preserving payments.
ZEC investor sentiment turns bearish
Data from derivatives platform CoinGlass shows that investors are following the trend as they bet more on the downside.
According to the latest data, $238.9 on the lower side and $257.2 on the upper side are important liquidation levels. At these levels, investors created long leveraged positions worth $5.91 million and short positions worth $7.91 million. This shows that investors expect the ZEC price to decrease.
Meanwhile, some long-term investors appear to be following the same trend and shedding some of their holdings. On April 5, 2026, ZEC’s spot entry/exit metric showed $1.02 million worth of ZEC moved to exchanges, indicating potential preparation for a sell-off.
Final Summary
- Zcash prices have risen, but price movements suggest that ZEC faces a risk of a 20% decline if it fails to break the descending trend line.
- A derivative tool reveals that both investors and traders have a bearish outlook as they unload their holdings and bet on short positions.
