Key Takeaways:
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The ZEC charts reflect BNB’s pre-crash parabola, suggesting a possible correction to the $220-$280 range next.
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Analysts warn of a “pump-and-dump” dynamic in paid promotions, although some crypto veterans remain optimistic for the long run.
Zcash (ZEC) has fallen about 30% since its November peak of $750, fueling fears of greater future losses, with some analysts warning of a possible “pump-and-dump.”
ZEC/USDT four-hour chart. Source: TradingView
The symmetrical triangle suggests a 50% decline in ZEC price
On Monday, Zcash traded inside a symmetrical triangle pattern on the four-hour chart, reflecting traders' indecision following the 1,500% price rally since late September.
The setup also followed a rebound from the 200-4H exponential moving average (200-4H EMA; the blue line), a key support trendline that means a possible move towards the upper boundary of the triangle near the .786 Fib level at $686 in November.
Symmetrical triangles can break in either direction depending on the final market sentiment.
In ZEC's case, market sentiment stays fragile because it is pressured by uncertainty over the Federal Reserve's rate of interest policy and stretched valuations of the AI sector, hurting risk assets.
Therefore, a break below the lower trendline of the triangle seemed to be the most certainly final result if prevailing macroeconomic conditions persist in the approaching weeks.
Such a move could push ZEC toward its downside goal of $282 by early 2026, which is about 50% below current levels.
The level corresponds to the local highs set in early October in addition to the 20-period EMA (represented by the green wave) on the weekly chart.
BNB parabola warns of 60% Zcash price correction
According to trader Nebraskangooner, Zcash's current structure is analogous to the parabolic rise and collapse previously observed with BNB (BNB) before its steep correction.
Similar to BNB’s 2021 lineup, ZEC has lost momentum after an overblown rally. Its price did not recapture its parabolic support, as expected by Zcash bulls, who had forecast a goal of $1,000 in early November.
As NebraskanGooner noted, such patterns were often preceded by deeper retracements of at the least 60%. This puts ZEC’s potential downside goal within the $220 to $280 range.
Analysts support pump-and-dump narratives
Adding to the bearish sentiment, Mark Moss, a Bitcoin-focused enterprise capitalist and educator, shared screenshots of outreach messages from marketing agencies offering paid ZEC collaborations.
Market analyst Rajat Soni warned that the recent hype surrounding ZEC might be an try to “find exit liquidity,” pointing to fabricated headlines that falsely claimed that Fidelity analysts had predicted that Zcash could reach $100,000.
Despite the bearish move, crypto big names like BitMEX founder Arthur Hayes and Gemini co-founders Tyler and Cameron Winklevoss remain bullish on Zcash, with the previous expecting a ZEC price of $10,000.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.
