The cryptocurrency market continued its weakness on Thursday, with Zcash also remaining under pressure. ZEC has fallen for three consecutive trading days, and its price has yet to recover the key resistance area below $500. As market risk aversion intensifies, funds have significantly reduced their allocation to high-volatility assets.
The Fed's statement suppressed risk appetite.
The market weakened against the backdrop of a tightening signal from the Federal Reserve after its meeting. The Federal Open Market Committee kept interest rates unchanged, in line with market expectations, but policymakers continued to emphasize their goal of bringing inflation back to the 2% long-term target. This statement dampened market expectations of a short-term shift towards easing.
The report mentions that the market is even starting to price in the possibility of another interest rate hike in the future, with a probability of about 30%. Under this expectation, concerns about tightening liquidity and persistently high financing costs have resurfaced, putting pressure on crypto assets as a whole.
Meanwhile, the Crypto Fear & Greed Index fell to 15 from 22 the previous day, remaining in the "extreme fear" zone. This indicates that trader sentiment remains cautious, and short-term participation is likely to remain low.
ZEC remains capped at the $477 level.
From a price perspective, ZEC is currently still trading below its 50-day exponential moving average, which is around $477. The price's failure to recover to this level has further fueled bearish sentiment and made the market more focused on whether the lower support levels will be tested again.
If the rebound lacks strength, the trading focus may continue to shift downwards. The report suggests that if buying pressure strengthens again, the market will first focus on the resistance around $477, with the next resistance level around $549, near the upper edge of the descending channel.
Support levels to watch are $434 and $376.
On the downside, the 100-day exponential moving average around $434 is considered the nearest support level; further down is the 200-day exponential moving average around $376. If selling pressure continues to intensify, the lower edge of the descending channel around $279 may become a more significant support area in the medium term.
From a momentum perspective, the MACD histogram remains slightly positive, indicating that prices have not completely failed to recover. However, the money flow indicator is still in the middle range of 40, showing weak buying pressure and the foundation for a short-term rebound remains unstable.
