Zcash (ZEC) is struggling to find buying interest: bearish momentum readings and persistent capital outflows suggest the altcoin may have a long road back to prior highs.
Zcash continues to show signs of technical fatigue, with the RSI stuck in negative territory and failing to register upward momentum. That lack of momentum indicates buyers have not regained control, and without a meaningful RSI improvement, ZEC may struggle to attract fresh demand.
Market participation has been declining, reinforcing the bearish backdrop. Traders appear to prefer safer assets while waiting for clearer signals, and the Chaikin Money Flow (CMF) points to persistent outflows — a worrying sign given ZEC’s already fragile market standing. Continued capital departures could snuff out attempts at a sustained rebound.
Price action underscores this weakness. At the time of writing ZEC trades around $363, sitting just above a key support at $344. Holding that level is crucial for any near-term recovery attempt toward the next target at $442; losing it would raise the odds of a deeper slide.
Zcash faces uphill battle as indicators signal weakness
If bearish pressure persists and ZEC fails to defend $344, the token could revisit $300 or even $260, extending the current downtrend and amplifying investor concern. Such moves would reflect a clear breakdown in market confidence and likely invite further selling pressure.
Conversely, a shift in sentiment could pave the way for recovery, but the path is steep. To reclaim November’s peak near $750, ZEC would need roughly a 101% rally. That scenario demands first flipping $442 into reliable support and then pushing toward $520 — milestones that appear ambitious under present momentum conditions.
In short, Zcash’s near-term outlook remains challenging. Without a reversal in technical indicators and renewed inflows, the token is more likely to trade lower or range-bound than to stage a swift comeback to prior highs.
