📉 Zcash Falls 14% — Cooling Phase or Start of a Deeper Correction?

After hitting a seven-year high above $730, ZEC slides to $575 — raising the question: retracement or reversal?

The privacy-focused cryptocurrency Zcash (ZEC) has dropped more than 14% in the last 24 hours. After a historic bull run that sent it above $730 — its highest level in seven years — ZEC now trades near $575, prompting debate over whether this is a healthy pullback or a sign of deeper weakness.

Despite the sell-off, ZEC remains one of the most talked-about assets in crypto, with both bullish and bearish narratives gaining traction.

🔎 Quick Facts

• 🚀 Rally: From ~$50 in early October to >$730 in November
• 📉 Latest move: –14% in 24 hours, now near $575
• 🏛️ Institutional catalyst: Grayscale Zcash Trust private placement
• 📈 Weekly RSI: 78 — strongly overbought
• ⚠️ Key level to watch: $608 support/resistance

📈 How ZEC’s Rally Started

Zcash’s explosive multi-month rally began in early October when the Grayscale Zcash Trust opened for private placement. At the time, ZEC traded around $50. Institutional interest + revived privacy narratives pushed ZEC on a parabolic trajectory, eventually hitting a seven-year high.

Influential market voices fueled the bullish sentiment:

• 🔮 @GEM_DETECTER projected a move above $800 in November.
• 🔭 Analyst yuna suggested ZEC could reach $1,800 in coming months.

Grayscale maintained a more neutral tone but reaffirmed Zcash’s purpose:

“ZEC helps make private, on-chain transactions possible.” — Grayscale

⚠️ The Bearish Case: Overbought & Losing Support

Not everyone believes the correction is finished. Crypto trader Crypto Tony warned that ZEC could fall further toward $540 if it cannot reclaim $608.

Technical indicators lean cautious:

• 📊 Weekly RSI: 78 — deep overbought territory
• 📉 Historically, RSI > 70 → often precedes pullbacks or temporary reversals

In short: momentum is cooling, and profit-taking pressure remains high.

🧭 Key Level: $608

The next decisive move hinges on $608:

• Above $608 → bullish continuation possible
• Below $608 → risk of deeper retrace toward $540

Traders are watching this level as the immediate pivot between recovery and further decline.

📉 The Bigger Picture

Zcash’s latest move reflects a classic crypto market pattern: parabolic gains → sharp corrections → opportunity + risk.

Whether this is a short-term cooldown or the beginning of a broader retracement will depend heavily on:

• overall market sentiment,
• Bitcoin stability,
• whether ZEC can reclaim key support zones.

👍 Bullish Scenario

If the market stabilizes and ZEC holds above $608:

• breakout retest toward $700–$800
• continuation of high-timeframe bullish structure

👎 Bearish Scenario

If momentum remains weak and ZEC stays below resistance:

• retest of $540
• broader correction phase begins

✅ TL;DR

• ZEC fell 14% after hitting a seven-year high.
• Institutional demand sparked the rally; now an overbought cooldown is underway.
• Weekly RSI at 78 suggests more downside is possible.
• $608 is the critical level that will determine the next move.
• Two paths ahead: bullish continuation or deeper retrace to $540.

📚 Read Also

• Zcash Whale Short Loses $22M as ZEC Blasts Past $700
• Cypherpunk Technologies Goes All-In on ZEC Accumulation
• Monero Breaks Out — Multi-EMA Bullish Structure Confirmed
• Bitcoin’s Macro Bottom Signal — Extreme Fear but Structural Strength