ZEC dips 3.5% despite broader crypto market’s recovery

Key takeaways

• ZCash is one of the worst performers among the top 30 cryptocurrencies by market cap, down 3.5% in the last 24 hours.
• The coin could rally higher in the near term amid demand for privacy-focused cryptocurrencies. 

ZEC slips as broader market recovers

ZEC, the native coin of the Zcash ecosystem, is down by 3.5% in the last 24 hours, making it one of the worst performers among the top 30 cryptocurrencies by market cap.

It is trading at $241 per coin, down from the $257 recorded on Tuesday. The bearish performance comes amid a decline in Zcash’s derivatives data.

According to CoinGlass, ZEC’s futures’ Open Interest (OI) reads $438 million, down from the $473 million recorded on Tuesday, reflecting the decreased notional value of open contracts.
Typically, an OI decline during a dip in spot price reaffirms the bearish narrative as traders anticipate further recovery.

Technical outlook: Will Zcash price recover above $250 soon?

The ZEC/USD 4-hour chart is bullish but inefficient as Zcash’s price faced rejection above the $250 psychological level. 

It is currently trading below its 50-day EMA of $248c, suggesting that the bulls failed to take advantage of the recent rally. 

Despite that, the near-term bias is cautiously bullish as ZEC holds above the recent lows, while remaining capped beneath the long-standing descending resistance line.

If the bulls regain control and ZEC’s daily candle closes above $250, it would confirm the upside breakout and open the path toward the 200-day EMA at $274, followed by the 23.6% Fibonacci retracement level at $362. 

The Moving Average Convergence Divergence (MACD) line has turned higher above the signal line and moved back into positive territory on the 4-hour chart, suggesting strengthening upside pressure. 

The Relative Strength Index (RSI) at 61 reinforces the recovery of bullish momentum without signaling overbought conditions.

On the downside, if the rejection candle holds, ZEC could drop towards the 38.2% Fibonacci retracement level at $231, followed by the rising trendline near the $200 psychological support level.