At press time, Zcash [ZEC] was up 3.25% over the past 24 hours. In addition to the price jump, ZEC has also recorded strong participation from traders and investors, as reflected in the trading volume, which surged over 32% to $267 million.
However, its past performance and current price action indicate that there is a risk of a possible downturn.
ZEC price action signals possible 20% fall
On the daily chart, ZEC appears mildly bearish, and the current level can be considered a make-or-break point, as it has a strong history of price reversals.
The chart shows that in February 2026, ZEC attempted a potential rebound but failed, and since then it has been in a downtrend, facing resistance from a descending trendline. In the past, whenever the ZEC price reached this resistance level, it recorded a sharp decline, which now appears likely to repeat.
Based on the current price action, if ZEC fails to breach its prolonged descending trendline, there is a high possibility that it could repeat its history with a potential decline. It may see a price dip of over 20%, reaching the $200 level.
However, this bearish thesis could be invalidated if ZEC breaks out of the trendline and closes a daily candle above the $260 level. Besides the price action, the technical indicator Average Directional Index (ADX) has fallen to 17.95, below the key threshold of 25, indicating weak momentum in the asset.
Looking at the current price action, a crypto analyst shared a post on X, noting that the $173 to $199.55 zone is a key level for ZEC. If the price fails to hold this zone, it could see a sharp decline, as the next major demand area lies between $54.18 and $79.91.
In addition, the expert noted that the bullish sentiment for ZEC remains intact due to its strong privacy-focused utility, low transaction costs, and growing relevance in decentralized finance and privacy-preserving payments.
ZEC investor sentiment turns bearish
Data from the derivatives platform CoinGlass shows that traders are following the trend, as they appear to be betting on further downside.
According to the latest data, $238.9 on the lower side and $257.2 on the upper side are major liquidation levels. At these levels, traders have built $5.91 million worth of long leveraged positions and $7.91 million worth of short positions. This suggests that traders are potentially expecting the ZEC price to decline.
Meanwhile, some long‑term holders appear to be following the same trend, offloading part of their holdings. On the 5th of April 2026, ZEC’s spot inflow/outflow metric showed $1.02 million worth of ZEC moving into exchanges, suggesting potential preparation for a sell-off.
Final Summary
- Zcash prices climbed, but price action suggests ZEC is at risk of a 20% drop if it fails to breach the descending trendline.
- A derivative tool reveals that both investors and traders have a bearish outlook, as they appear to be offloading their holdings and betting on short positions.