Zcash is on the edge of a precipitous drop to $256 as a bearish double top pattern emerges, and promises a significant price decline when market sentiment is weakening.
The privacy-enhanced cryptocurrency Zcash is facing the danger of experiencing a sharp drop in price, analysts caution.
The token shot up more than 850 percent in recent months, reaching a seven-year high of more than $734.96 on November 8.
But since then, it has fallen almost 30 percent, trading at almost $512 at press time, which is an indication of increasing bearish momentum (crypto.news).
Double Top Formation Indicates Future Peril.
On the 4-hour chart, Zcash has developed a conventional bearish double top trend. The top of the neckline was at 503.42, and the two peaks were 749 and 683. This technical form is very predictive of falling prices.
As the momentum indicators, such as the MACD, are moving downwards, and the RSI continues moving down but not in the oversold zone yet, the environment is ready to continue falling (crypto.news).
The next important support level is approximately at the level of $400, and it coincides with a major Fibonacci retracement.
Should Zcash decisively fall beneath this support, the price may fall to a crater of $256.41, which is about half the price it is now.
This target is determined by the subtraction of the height of the double top pattern from that of the neckline, which proves the strong bearish pressure in the future.
Falling Futures Interest Sentiment Collapses on the market.
According to the market data, Zcash futures interest is dropping at a rapid rate. Open futures interest fell 28 per cent in 24 hours to $846 million, showing traders selling contracts and a lack of confidence.
Also, the long-to-short ratio was lower than 1, indicating that more of the market players bet on the decline of prices but not gains.
This change of heart is significant in light of increased demand for privacy coins due to privacy concerns and regulatory issues on transparent blockchains such as Bitcoin.
Other peers, including Monero and Dash, also recorded recent increased gains, but the short-term perspective of the Zcash currency is rather bleak in spite of its underlying strong performance in such aspects as privacy settings like shielded transactions based on zk-SNARK cryptography.
The post Zcash News: Zcash Plunges Risk: Bearish Double Top Sparks Crash Fears appeared first on Live Bitcoin News.