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Zcash Price Plunges 24% Amid Crypto Market Correction
Zcash (ZEC) experienced a significant 24% drop in price at the beginning of December, marking the largest one-day loss among major cryptocurrencies. The privacy-focused token fell to one-month lows as broader market corrections weighed on digital assets.
Key Technical Levels Breached
The recent pullback saw Zcash drop below several crucial support levels, including its EMA200 moving average. Analysts highlighted that this technical breach could pave the way for further downside, though short-term recoveries are possible.
A market analyst noted that Zcash experienced “a perfect bearish retest followed by a strong rejection” last week. Failure to reclaim the EMA200 may position the cryptocurrency for additional declines to lower support zones.
Price Action Following November Rally
Earlier in November, Zcash had reached all-time highs following a three-month parabolic advance. Since that peak, the token had been trading within a defined range. A late-November pullback pushed the price below a key support area for the first time in nearly a month, followed by further declines before a minor recovery.
Analyst Perspectives
Altcoin Sherpa commented on the price drop, stating that “Zcash could decline further after losing a crucial support level,” while noting that “the price will likely experience short-term bounces during any retracement.”
Mert Mumtaz, co-founder and CEO of Helius, emphasized the long-term perspective, saying, “A correction following a large rally is normal” and that Zcash “looks great” on higher timeframes. He added, “Privacy is not a narrative, private money is the entire purpose of crypto,” highlighting the token’s potential relevance in the broader cryptocurrency ecosystem.
A pseudonymous analyst known as Make Sense explained that Zcash has reached a critical technical level, noting:
“This is where market makers decide the next trend: bounce early → mid-range rally or deep sweep → full trend reversal. Either way, volatility is about to explode.”
The analyst added that maintaining current support could allow a recovery to mid-range, while a breach might trigger tests of lower support levels before any potential trend reversal.
Broader Market Context
Zcash’s decline occurred alongside broad-based losses across the cryptocurrency market, with multiple digital assets posting declines during the same period. The pullback highlights ongoing volatility within the sector, especially following extended rallies in several altcoins.
