Foreign media reports that amid another widespread decline in the crypto market and a single-day liquidation of over $900 million in the derivatives market, ZCash (ZEC) has fallen by more than 20% since May 25. Its earlier breakout above its trading range has been forced back into its original range due to overall selling pressure.
Bitcoin's pullback brings collateral pressure
The article mentions that Bitcoin's nearly 5% drop since the beginning of the week is one of the key factors behind ZEC's pullback. Unlike some cryptocurrencies that quickly stabilized after large-scale liquidations last weekend, ZEC bulls failed to recover their losses quickly, and the short-term trend has clearly weakened.
However, the article argues that this decline is more of a pullback than a complete reversal of a larger trend. Previous bullish assessments are not entirely invalid, provided key support levels are not breached.
$486 remains a key level
According to the technical range given in the article, the area around $530 corresponds to a significant retracement level, and ZEC has already fallen to this area. If the price continues to decline towards $486, market skepticism regarding the bullish structure will intensify significantly.
- The A/D ratio indicates that sellers remained dominant over the past week.
- The MFI fell to 10.35, reflecting that assets are in a clearly oversold range.
Based on this, the article concludes that ZEC is currently in a support testing phase. If the price falls below $486, the existing bullish outlook will be invalidated; if it holds this level, a recovery is still possible.
The $520 to $470 range is attracting attention.
The monthly liquidation heatmap shows a dense liquidation zone between $520 and $470. The article suggests this area may be repeatedly tested by the market in the short term.
Given the overall weak sentiment and pressure on Bitcoin's price, ZEC may continue to decline in the coming weeks. However, foreign media articles suggest that as long as the $486 level is not effectively broken, the larger-cycle upward structure can remain intact, and the market will likely choose a direction around this support level.
