Zcash (ZEC) Under Pressure: Will It Lose the $240 Support?

• Zcash is currently trading around the $247 mark.
• The ZEC market has been hit with $4.81M in liquidations.

The crypto market does not seem to display a recovery. Bearish pressure is gaining traction, and the broader sentiment is hanging in the extreme fear zone. Currently, both the red and green charts are alive, but the green is likely short-lived. Bitcoin (BTC), the dominant asset, is trading at $66.3K, and Ethereum (ETH), the largest asset, hovers around $1.9K. 

Meanwhile, Zcash (ZEC) has lost 2.46% in value over the 24 hours. The asset opened the day trading at a high of $252.90, and with the potential bearish turn, the ZEC price slid to a low of $230.91. The recent loss made Zcash trade at $247.23, and the daily trading volume settled at $291.18 million. In addition, the ZEC market has hit with a liquidation of $4.81 million. 

ZEC price (Source: TradingView)

On the four-hour chart of the ZEC/USDT trading pair, the bears are in power. The price could try to retrace toward its support level at $240.34. Further bearish correction might trigger the death cross to unfold and take the price even lower. On the flip side, if a bullish reversal occurs, the Zcash price might rise and find the nearest resistance at around $252.68. An extended upside pressure could initiate the emergence of the golden cross, and send the price toward its recent highs. 

Are Technical Signals Pointing to Further Weakness in Zcash?

Zcash’s technical analysis reports that the MACD and the signal lines have crossed below the zero line, and the broader trend shifted into bearish. There is an increased risk of continued downward pressure unless the momentum reverses. Besides, the CMF indicator stationed at -0.17 suggests strong selling pressure in the ZEC market. With the deeper negative value, a noticeable amount of money is flowing out of the asset, and the distribution is dominating.

The current market sentiment of Zcash is having a weak bearish momentum, as the daily RSI is at 35.36. It is resting below the neutral level, showing that the sellers are currently having control. The asset has not entered the oversold territory, which may likely approach soon. 

Furthermore, ZEC’s BBP reading of -9.72 implies strong bearish strength. The selling dominance is aggressive, with the bears firmly in control. Notably, heavy downside pressure is present, and the market experiences strong distribution unless a reversal signal appears.

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