- ZEC dropped 53% in two weeks, signaling strong retracement pressure.
- Momentum indicators favor sellers, suggesting potential pause or reversal in the bull cycle.
- Key support levels at $315-$321 and $197 are critical for price stabilization.
Recently, ZCash — ZEC , stunned the market with an enormous rally from $38.69 to $750 in just ten weeks. The 1,838 percent gain captured massive attention and drew speculative traders into the privacy coin. However, the recent 53 percent drop in two weeks has traders asking whether the rally has ended or if this is merely a retracement. Examining technicals and key levels provides clues about what might come next for ZEC.
Technical Overview: Retracement or Trend Shift?
ZEC’s peak in early November coincided with a broader market pullback and Bitcoin losing the $100k level. This created the first signs of selling pressure. From a technical perspective, the drop below the $470 higher low nearly ten days ago suggested the onset of a retracement phase. Further decline below $424 reinforced the bearish shift. Fibonacci retracement levels indicate that the rally might not be over.
The 78.6 percent retracement has not been breached, hinting that ZEC could find strong buying support in the coming sessions. Still, the hourly chart signals caution. The $400-$420 range shows supply imbalance and could act as a short-term resistance.Momentum and capital flow also favor sellers. The daily MFI shifted toward bearish territory, dropping below 20, signaling strong selling pressure.
Hourly charts confirm the trend, suggesting that more losses could occur before a meaningful bounce. On-balance volume slides lower on shorter timeframes, supporting the retracement scenario. Traders should watch the $400-$420 region closely. This level will likely influence short-term price action. A failure to reclaim this zone could push ZEC toward lower supports.
Key Support and Resistance Levels
ZEC faces critical levels that traders must monitor. Immediate resistance sits at $400-$420, where previous selling pressure accumulates. Losing this range could accelerate declines. Support near $315-$321 is under threat, and a daily close below $315 may signal stronger downside momentum. If the $315 level fails, Fibonacci analysis suggests the next support zone lies near $197.
Traders seeking to manage risk should plan accordingly, using these levels to adjust positions. The combination of bearish momentum, selling pressure, and concentrated resistance highlights the challenges for bulls in the near term. While the daily chart shows some potential for recovery, the hourly timeframe emphasizes caution. Bears currently control momentum, and any rally attempt may face immediate resistance.
Traders might consider using retracement zones for tactical entries rather than assuming a full recovery is imminent. ZCash remains a highly volatile asset. Past performance demonstrates the potential for rapid gains, but technical indicators suggest that caution is warranted. Monitoring critical support and resistance levels, along with momentum indicators, will be key for managing positions effectively.

