Zcash Price Crashes as Market Cap Halves: What Happens Next?
Over the past few weeks, Zcash’s price has dropped precipitously. The majority of the ZEC token’s gains from the previous bull run, when it increased from less than $50 to $742, have been lost. Today, December 6, it was selling at $342, a 53% decrease from its peak this year. Its market capitalization dropped from roughly $11 billion to $5.6 billion today, placing it close to its lowest level since December 31.
The recent spike in Zcash‘s price and its current decline would have seemed like random events to the average individual. But for market technicians, this upswing and downswing were long overdue. The Wyckoff Theory, a technical idea that has been around for a century, is what caused the rally. According to this hypothesis, assets arise from consolidation, increase, and ultimately decline. The weekly data indicate that the price of ZEC remained stagnant for more than three years. It never took part in the little bull runs that took place during this time due to its tight consolidation.
Zcash Price Drops as Privacy Tokens Face Regulatory Pressure
Like other privacy tokens, Zcash stayed within a narrow range due to legislation and the delisting of numerous exchanges. Therefore, the Zcash price was in the accumulation phase, which is distinguished by declines. Grayscale’s Zcash fund application prompted it to join the markup phase in September. The token is now in the stages of distribution and markdown. These stages began when the token displayed a double-top pattern at $740, which caused holders to panic sell.
ZEC Eyes Relief Rally After Three Black Crows Breakdown
The three black crows pattern, which is defined by three successive bearish candles, has now been established. Given that it has retested the crucial support at $305, its peak in November 2021, the token may see a relief rally in the future. Before the SEC approves the Grayscale ZEC ETF, this could occur. It’s conceivable that this rebound will be a dead-cat bounce. This happens when a free-falling asset briefly recovers before resuming its downward trajectory.
For more up-to-date crypto news, you can follow Crypto Data Space.
