ZEC sinks to multi-month lows with momentum firmly bearish | Credit: Hameem Sarwar
* ZEC remains locked in a strong downtrend, printing lower highs and lows across timeframes.
* Momentum and other indicators confirm persistent selling pressure with little accumulation.
* Unless October support holds, Zcash risks further downside before any meaningful bounce.
Zcash (ZEC) has come under heavy selling pressure, extending its multi-week decline and collapsing to levels last since October.
As the broader crypto market struggles to regain traction, ZEC’s price continues to underperform, along with other altcoins.
This has raised fresh concerns about whether the privacy coin’s previous bullish momentum has fully unraveled.
With price carving new lower lows across multiple timeframes, traders are increasingly questioning whether this move represents a temporary capitulation or the early stages of a deeper bearish phase.
Here is what is likely to happen to Zcas’ price.
Zcash Downtrend Strengthens Further
Zcash’s bearish structure continues to deteriorate. As stated earlier, this has dragged the privacy-focused cryptocurrency to its lowest level since the October 2025 rally.
On the 4-hour timeframe, ZEC’s price remains trapped within a descending channel. Looking closely, the coin has printing successive lower highs and lower lows — a clear confirmation of sustained downside control.
Momentum indicators further validate the bearish takeover.
The Awesome Oscillator (AO) has posted a series of expanding red histogram bars, sliding to -36.45, signaling strengthening bearish momentum and diminishing upside participation.
Such deep negative readings typically reflect aggressive selling pressure rather than temporary profit-taking.
The drawdown might not be over yet as Chaikin Money Flow (CMF) reinforces AO’s signal with a depleting move.
As it stands, the CMF sits at -0.07, suggesting persistent capital outflows. This indicates sellers continue to dominate order flow, with little evidence of large-scale accumulation at current levels.
Price action shows that ZEC is respecting the lower boundary of the falling channel, confirming that bears still control the short-term structure.
Each rebound attempt has been capped by the channel’s upper trendline, converting prior support zones into resistance.
Until Zcash price reclaims and holds above the channel’s midline, upside attempts are likely to remain corrective.
Participation Thins Across ZEC
On-chain data shows open interest (OI) has declined by 5%, suggesting traders are closing positions and reducing exposure.
At the same time, spot exchange netflows have turned negative, indicating ZEC is moving off exchanges rather than onto them, a sign of reduced immediate sell pressure.
While this suggests some holders are opting to self-custody rather than liquidate, the drop in open interest confirms that participation is thinning, leaving price action vulnerable and directionally weak.
ZEC Price Analysis: Downtrend Ahead
The daily chart reflects a sustained downtrend, with Zcash price posting consecutive red candles that slice through former support zones with little resistance.
Momentum indicators align with this weakness. The Moving Average Convergence Divergence (MACD) has flipped into negative territory, with the 26-day EMA crossing above the 12-day EMA, reinforcing a bearish outlook and confirming sellers remain in control.
At the same time, the Relative Strength Index (RSI) is now trading in the oversold region, signaling that bearish momentum has intensified and that selling pressure may be approaching exhaustion.
However, history warns against premature bottom calls. In strong downtrends, oversold.
Zooming out to the Fibonacci retracement, Zcash’s price trades around $244.78, a level that coincides with its October low.
Price is now approaching the 0.236 Fib retracement, a historically weak support level during sustained downtrends.
A break below this zone would confirm a deeper retracement and invalidate any near-term recovery thesis.
On the contrary, holding this level could trigger a short-lived technical bounce towards $399.98.
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