Zcash plunged over 20% in 24 hours to $479, extending the correction to 45.6% from $880 peaks reached after a 1,200% rally from October lows near $32.
The pullback has ignited debate over whether weakness indicates a reversal or a setup for continuation, with the token still up 14% weekly and maintaining its position among the cycle’s strongest performers.
This dip occurred as the Zcash Foundation announced leadership appointments, promoting Pili Guerra to Head of Engineering and Danika Delano to Chief Operating Officer.
Community Maintains Conviction Through Volatility
Analyst Eric Van countered bearish narratives, noting Zcash can fall to a lower trendline and remain bullish with a higher low intact.
He emphasized bearish volume shows exhaustion, with lower highs carrying less weight than lower lows that form trend foundations. Van stated he will alert followers if genuine breakdown signs emerge.
Thor Torrens, a former adviser to POTUS, also reminded followers that his group bought at $17, making current prices unfazed.
He responded to government acceptance questions by referencing the evolution of HTTPS, stating that governments will use Zcash or stablecoins with zero-knowledge proofs for Web3, as they adopted HTTPS for Web1.
Torrens cited Jerome Powell’s statements about avoiding public ledgers, calling ZEC “hidden in plain sight.“
Currently, price consolidates inside a bull flag pattern following the late October surge. The hype and excitement surrounding it built up and rallied it throughout last month.
However, today’s dip close would invalidate this bullish streak, potentially delaying the $1000 breakout hypothesis.
Multiple Support and Breakout Zones Await
Ichimoku Cloud analysis reveals rejection from the red cloud at $793 after the price touches resistance.
Current positioning requires holding the orange cloud at $342 for a strong bounce toward the red cloud.
Failure to hold might trigger a decline to a purple cloud around $160, representing a 66% additional drop from current levels.
According to the analyst, the framework shows extreme greed sentiment with the indicator, suggesting euphoric levels typically marking tops rather than midpoints.
A prior warning at $586 predicted a maximum upside of $600-$1,400 before ZEC peaked near $880.
There was a parabolic trendline from $32 to $880, which analysts believe indicates a breakdown with typical 60-70% corrections, suggesting targets of around $264-$352, which aligns with the orange cloud support at $342.
Bounces can be volatile during parabolic breakdowns, creating counter-trend rallies that trap participants.
Additionally, liquidity zones identify immediate support at $480-$500 (Zone #1) and secondary support at $420-$440 (Zone #2).
According to Analyst Ardi, the Bullish Shark harmonic pattern around this zone forms with 38.2% Fibonacci retracement aligning with the neckline, carrying a 62% historical success rate.
Loss of the first zone might trigger a support test at the second zone before approaching the orange cloud.
Currently, a successful hold at liquidity zones with Bullish Shark completion enables a bounce toward the $525 neckline resistance and potentially $550-$600.
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