Zcash has pulled back sharply, losing over 15% in the past 24 hours and reversing a part of last week’s strong gain. The drop can also be seen in a slowdown in momentum and a noticeable shift in sentiment, as reflected in both trading activity and market cap, which has now contracted by nearly 8% on the day.
This kind of price swing isn’t unusual after a vertical move, but the recent changes in technical indicators suggest that short-term strength may be fading. While the longer-term trend is still positive, the current structure now shows signs of pressure that weren’t visible just a few days ago.
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Key Indicators Point to Waning Momentum
The Relative Strength Index has moved lower. RSI(14) now stands at 66, down from 73 earlier in the week. The faster RSI(7) has dropped to 60. These values are still high but no longer signal extreme conditions. This shift tends to happen when a market loses steam but hasn’t yet triggered a full reversal.
Zcash also traded above the upper Bollinger Band, which often signals overextension. The price has now moved back below that upper band, aligning with the cooling seen in the RSI indicators. This shift suggests that the asset was technically overbought during the peak of the rally but is now starting to normalize.
At the same time, the Money Flow Index remains high at 88. MFI combines volume with price movement to measure the strength of inflows. When MFI is this elevated while RSI is declining, it can suggest that strong buying has already occurred and may be slowing down. This type of mismatch is often seen ahead of short-term consolidation or deeper corrections.
There’s also a Fibonacci retracement support level near $166, which could serve as a technical floor if selling continues. That level is being watched to see if it will stabilize price action or mark the beginning of a larger drop. If the price closes well below it, more downside risk could open up.
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Technical Picture Remains Cautious in the Short Term
Right now, technical signals point toward a loss of momentum. RSI values are drifting lower, while the MFI remains high, suggesting that recent buying strength may already be priced in. The $166 support zone from Fibonacci levels is the area to watch next. If that holds, ZEC might stabilize. If it breaks, the correction could deepen.
As always, technical analysis can help identify shifts in trend and potential support zones, but it doesn’t predict news, sentiment changes, or liquidity shocks. Price can move sharply in either direction depending on factors outside the charts, such as tariffs developments.
