Zcash (ZEC) fell more than 6% on Monday, trading at $216.78 as bearish momentum strengthened and analysts flagged the risk of a deeper correction toward $126. The decline follows repeated tests of key support levels, signaling fading demand and growing downside pressure.
As of March 23, 2026, 24-hour trading volume rose 20.92% to $332.2 million, according to data from CoinMarketCap. The increase in volume during a price drop suggests heightened selling activity, often associated with distribution phases where larger market participants reduce exposure.
ZEC has also declined 5.26% over the past week, reflecting sustained weakness despite earlier gains. Market watchers note that the asset’s inability to maintain higher price levels indicates a shift in sentiment, with sellers increasingly dominating short-term price action.
Zcash Shows Early Signs of Downtrend
According to crypto analyst Extropic, ZEC’s recent 33% rally has fully retraced, with price action now forming a clear pattern of lower highs and lower lows, a classic indication of a developing downtrend. The asset is currently consolidating just above a critical support zone between $190 and $200.
This support area has been tested multiple times, with each rebound showing reduced strength. Analysts warn that repeated pressure on support typically weakens it, increasing the probability of a breakdown.
Volume data further reinforces this outlook, with stronger participation during sell-offs compared to relatively muted buying activity during rebounds.
If ZEC loses the $190 level decisively, technical projections suggest a move toward $126, a previous demand zone before the last major rally. However, any short-term upside may remain limited unless the asset can reclaim prior resistance levels and shift its overall market structure.
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Trapped Buyers and Selling Pressure Dynamics
Crypto analyst Third Eye maintains a bearish outlook, pointing to a consistent downtrend marked by descending resistance and lower highs. A recent bounce toward $270 was described as a liquidity grab rather than a sustained reversal, reinforcing the broader bearish narrative.
Key support levels to watch include $210 and $190, followed by deeper downside targets at $160, $120, and potentially $60 in an extended decline scenario. On the upside, analysts say ZEC would need to reclaim the $300–$330 range to invalidate the current bearish trend.
The breakdown of the previous support zone in the low $300 range, which has now flipped into resistance, highlights the presence of trapped buyers exiting positions during rallies. While price compression may indicate slowing selling pressure, no confirmed reversal signals have emerged.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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