Zcash price has faced renewed selling pressure after a sharp decline of 16% over the last 24 hours, pulling the altcoin down from its attempt to move above $400.
The rejection has delayed ZEC's attempt to regain higher levels, and the prolonged wait may introduce further challenges for traders if market sentiment weakens again.
Zcash differs from Bitcoin
The correlation between Zcash and Bitcoin has weakened in recent days, falling back below the zero line. A negative correlation means that ZEC is no longer moving in sync with BTC's price direction.
Although this may initially seem neutral, it introduces an unusual risk dynamic. If Bitcoin rises, Zcash may fail to benefit from broader market optimism.
Conversely, if Bitcoin falls sharply, ZEC may unexpectedly move higher, but without a guarantee of lasting strength.
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The liquidation map adds an additional layer of caution for ZEC holders right now. Long traders face an increased liquidation risk, with nearly $17,49 million in long contracts exposed if ZEC falls to $300 or lower.
These potential liquidations represent a significant pressure point for bullish sentiment.
If prices approach this threshold, falling liquidations could accelerate downward movement. Such events often lead to traders closing long positions and discourage new long exposure, contributing to a feedback loop that reinforces bearish momentum.
ZEC is trading for $339 and hovering around the $344 support level after its steep fall from intraday highs. The strong selling pressure and weakened market structure suggest that further downside is possible in the short term.
If bearish momentum continues, ZEC could fall towards the critical $300 support. Losing this level will likely trigger the $17,49 million liquidation cluster. This could potentially push the price down to $260 as forced selling intensifies.
But if momentum shifts and buyers return, ZEC may stabilize at $344 and attempt a rally towards $403. A successful break above this level will invalidate the bearish thesis and restore confidence among long traders.
