Zcash (ZEC) dropped 4% on Thursday, marking its third straight day of losses as the broader cryptocurrency market stayed bearish. The privacy coin is trading below its 50-day exponential moving average (EMA) near $477, with macro pressures and weak buying momentum adding to the downside.
Macro headwinds pile on
This week the Federal Reserve kept interest rates unchanged, but Chairman Kevin Warsh emphasized the central bank's commitment to its 2% inflation target. That reinforced expectations that rates will stay higher for longer — and market participants now assign roughly a 30% probability to a future rate hike. Tighter financial conditions and reduced liquidity for risk assets are front of mind for traders.
The Crypto Fear & Greed Index fell to 15 on Thursday from 22 a day earlier, staying deep in the 'Extreme Fear' zone. That's the lowest reading in weeks and reflects the market's sour mood.
Technical levels in focus
ZEC is stuck below its 50-day EMA, which sits at roughly $477 and acts as immediate resistance. Above that, the upper boundary of a descending channel near $549 is the next target if a breakout materializes. On the downside, key support levels are $434 (the 100-day EMA) and $376 (the 200-day EMA).
The MACD histogram remains marginally positive, suggesting some recovery attempts are possible. But the Money Flow Index is in the mid-40s, indicating weak buying momentum — notably weaker than that of rival privacy coin Monero.
Downside risks remain
If bearish pressure continues, ZEC could slide to $434, then $376. A deeper selloff could bring the $279 level into play. The descending channel pattern points to a continued downtrend unless the price can push above the 50-day EMA.
Traders are watching whether ZEC can hold the $434 support in the coming sessions. A break below that would open the door to the next major floor — and make a move toward $279 look increasingly likely.
