Zcash price crashes 24% as price loses key support levels

Zcash price plunged 24%, breaking several support levels and its EMA200, with analysts warning of further downside but noting that long-term charts and the privacy thesis remain intact.

Zcash (ZEC) price declined 24% in a one-day pullback at the start of December, leading losses among major cryptocurrencies as broader market corrections impacted digital assets, according to market data.

The privacy-focused cryptocurrency fell to one-month lows following a late Sunday market correction, losing several key technical support levels. Zcash (ZEC) had experienced a rally to its all-time high in early November after a three-month parabolic advance, according to price data.

Since the November peak, the altcoin had traded within a defined range before the late-November pullback saw the price close below a key support area for the first time in nearly a month. The cryptocurrency subsequently dropped below additional support levels before recovering slightly, according to chart analysis.

Zcash registered the largest price declines on weekly and daily timeframes among tracked cryptocurrencies. The analyst noted the cryptocurrency fell below the EMA200 moving average, recording “a perfect bearish retest followed by a strong rejection” last week. Sjuul indicated that failure to reclaim the key moving average could position Zcash for further declines to lower support levels.

Altcoin Sherpa, a market analyst, stated that Zcash could decline further after losing a crucial support level, though the analyst added the price will likely experience short-term bounces during any retracement.

Mert Mumtaz, co-founder and CEO of Helius, stated that a correction following a large rally “is normal” and that the privacy token “looks great” on higher timeframes. Mumtaz highlighted that “privacy is not a narrative, private money is the entire purpose of crypto,” suggesting the altcoin could challenge other leading cryptocurrencies in the future.

A pseudonymous analyst operating under the name Make Sense stated that Zcash reached a critical technical level after falling to its first major support area below the November range.

According to the analyst’s assessment, if the cryptocurrency maintains current levels, the price could recover to mid-range. Conversely, if current support fails, the token could retest lower support areas before a potential trend reversal. “This is where market makers decide the next trend: bounce early → mid-range rally or deep sweep → full trend reversal. Either way, volatility is about to explode,” the analyst stated.

The cryptocurrency market experienced broad-based declines during the period, with multiple digital assets posting losses, according to market data.