- Zcash faces a short-term correction after sharp weekly gains.
- Price holds above major long-term support at $462.97.
- Institutional investors buy $284.5 million worth of ZEC.
- Market eyes $592 and $642 as next bullish targets.
Zcash (ZEC) continues to move on a bearish trajectory, reflecting a noticeable drop in value. In the past 24 hours, ZEC has dropped about 11.12%, yet it retains a 29.9% weekly gain, reflecting high market volatility.
Currently, ZEC is trading at $562.28 with a 24-hour volume of $4.63 billion, up 145.38% from the previous day. Meanwhile, its market capitalization stands at $9.18 billion, down 10.92%, reflecting short-term selling pressure despite strong weekly gains.
Also Read: Zcash (ZEC) Price Prediction: Strong Bullish Setup Points Toward $610 Rally
Institutional Buying Sparks Renewed Market Optimism
In a major development, institutional giants BlackRock, Fidelity, and ARK Invest have collectively purchased $284.5 million worth of Zcash. This large-scale acquisition underscores rising institutional conviction in privacy-oriented digital assets. The move boosted optimism among investors, marking a turning point for the privacy coin sector.
The increasing attention from main financial organizations could serve as a trigger for future rallies, putting Zcash on the path to steady growth. Even as the whole market processes this news, traders have been following the main resistance levels. The stage is set for volatility, and for many investors, missing this trend could prove costly.
ZEC Faces a Correction Phase but Maintains Long-Term Strength
From a technical perspective, the retracement in ZEC took place as a follow-through on a strong rally, pushing the token close to the value of $700. The token has broken below the 50-day simple moving average of $592.58, indicating a strong retracement following the over-exuberance. Nevertheless, the overall technical perspective appears firmly positive as ZEC remains well above the 200-day simple moving average of $462.97.
The 20-day SMA at $641.95 now acts as the closest resistance level, while $700 remains the next major ceiling to break. On the flip side, the level of support at $521.53, which is formed by the 100-day SMA, could be a crucial point for buyers to regain entry. A positive response from this level could see a rise to $592, but strong buying momentum could see a rise to $642, as well as $700. A close below $521 could see a deeper correction to $462.
The MACD indicator confirms ongoing bearish momentum, marking a negative crossover along with intensified bearish indicators. A slowing down in the bearish indicators could indicate a stabilization trend, especially when the MACD line draws close to the zero level. ZEC’s current price action indicates a period of correction within a larger-scale bullish trend, which leaves it susceptible to a reversal following the end of a consolidation phase.
Also Read: Zcash Adds NEAR and Brave Wallet Support, ZEC Eyes $320
