Zcash (ZEC) Remains Under Pressure as Bitcoin Sets Defensive Market Tone

Zcash (ZEC) continued its decline on Saturday, 31st of January 2026, as Bitcoin’s decisive move towards the $81,000 mark sparked increased risk aversion in the broader cryptocurrency market.

The decline in ZEC comes as macro uncertainty increased after a partial shutdown of the US government.

Currently, ZEC is trading at $324.17 as of Saturday, down 2.42% in the last 24 hours, based on CoinMarketCap data.

The token recorded a daily trading volume of $1.05 billion, with its market capitalization being recorded at $5.35 billion, translating to approximately 0.19% of the total cryptocurrency market. The price action indicates that bearish momentum still persists.

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Zcash (ZEC) Drifts Toward $300 Liquidity Zone

Crypto analyst Ardi points to the price range between $290-$300, which is considered to be the near-term liquidity pocket in the event the support levels are breached.

In the latest price action, the market has been dominated by sellers, with the price action in ZEC facing difficulty in attempting to bounce back due to the overall market conditions.

Source: Ardi X Post

From a technical standpoint, the Fibonacci retracement level at 61.8% has been drawn from the price action of the long-term move for Zcash from around the $40 price level to the latest highs.

This zone is considered to be the key for short-term stabilization. Any reaction in this zone may provide some relief for the short term, but any subsequent failure to hold may set the stage for further downside pressure.

Any subsequent move down may lead to the focus being shifted to the 200-day simple moving average at around $270. This has been a level of structural support in the past for any correction.

Any move down may also lead to the focus being shifted to the 78.6% Fibonacci retracement level at around $200.

US Government Shutdown Adds to Macro Pressure

In addition to this cautious background, a partial shutdown in the US government has come into effect as lawmakers have been unable to agree on a funding deal in the House.

In terms of the impact of the shutdown, it is worth noting that it has come in at a time when traditional markets are closed, and as such, it will have a muted rather than an absolute impact.

Moreover, in terms of risk factors being monitored as markets reopen, there are a number of factors being taken into consideration, such as movements in futures markets, volatility related to policy uncertainty, and movements in safe-haven assets such as US Treasuries.

In past instances, short-lived shutdowns have not caused significant market disruptions, although they have increased uncertainty, which is typically detrimental to speculative assets such as cryptocurrencies.

Zcash Outlook Remains Cautious

For now, Zcash is at risk as technical pressure persists in conjunction with macro headwinds. A strong move higher out of the $300 area could potentially slow Zcash’s decline and spark short-term buying interest.

As Bitcoin dictates the tone for the rest of the market, with the macro conditions still unresolved, the traders are likely to remain defensive in the near term, while the volatility is likely to increase due to the delayed reactions to the recent events.

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