Zcash price has faced renewed selling pressure after a sharp decline of 16% in the last 24 hours, pulling the altcoin down from its attempt to move above 400 USD.
The rejection has delayed ZEC's attempts to regain higher levels, and the extended wait may pose more challenges for traders if market sentiment weakens again.
Zcash is distancing itself from Bitcoin
The correlation between Zcash and Bitcoin has decreased in recent days, again below the zero line. A negative correlation means that ZEC no longer moves in tandem with BTC's pricing.
This may seem neutral at first, but it introduces an unusual risk-on dynamic. If Bitcoin rises, Zcash may not benefit from the broader market optimism.
On the other hand, if Bitcoin drops sharply, ZEC may unexpectedly move higher, but with no guarantee of lasting strength.
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The liquidation map adds another layer of caution for ZEC holders right now. Long traders are facing heightened liquidation risk, with nearly 17,49 million USD in long contracts exposed if ZEC drops to 300 USD or lower.
These potential liquidations represent significant pressure on the bullish sentiment.
If prices approach this boundary, cascade liquidations may accelerate the decline. Such events often cause traders to exit long positions and deter new long positions, contributing to a feedback loop that reinforces bearish momentum.
ZEC is trading at 339 USD and hovering around 344 USD support after its steep decline from intraday highs. The sharp sell-off and weakened market structure suggest that further declines are possible in the near future.
If bearish momentum continues, ZEC could fall towards the critical 300 USD support. Losing this level would likely trigger the 17,49 million USD liquidation cluster. This could potentially push the price down to 260 USD as forced selling intensifies.
However, if momentum shifts and buyers return, ZEC could stabilize at 344 USD and attempt to recover towards 403 USD. A successful breakout above this level would invalidate the bearish thesis and restore confidence among long traders.
