Zcash price has suffered a harsh reversal in the past few weeks, erasing most of the gains from its recent bull run that pushed it from below $50 to $742.
Summary
– Zcash price crashed from $742 in November to around $350 today.
– The rise and fall can be explained by the Wyckoff Theory.
– ZEC has moved into a markdown phase marked by panic selling.
Zcash (ZEC) traded near $352 on Dec. 6, down about 53% from its peak this year. Its market capitalization slid from over $11 billion to roughly $5.8 billion, and the price sits near its lowest level since Dec. 31.
Wyckoff Theory explains the move
What looked random to casual observers follows a century-old technical framework: the Wyckoff Theory. That model describes cycles of accumulation, markup, distribution and markdown that can explain long consolidations followed by sharp rallies and subsequent declines.
Weekly charts show ZEC stuck in a narrow range for over three years, missing several smaller bull runs. This tight consolidation—exacerbated by regulatory pressure and exchange delistings affecting privacy tokens—represents the accumulation phase. The breakout into a markup began in September, sparked by Grayscale’s Zcash fund application.
Distribution and markdown phases appear to have started after ZEC formed a double-top near $740, triggering heavy selling. The token has also displayed a three black crows pattern—three consecutive bearish candles—which signals further weakness.
Outlook
ZEC has retested a key support around $305, which was its highest point in November 2021. A relief rally is possible, potentially ahead of any SEC decision on Grayscale’s ZEC ETF, but such rebounds often turn out to be dead-cat bounces before a continued downtrend. A break below $305 would open the way to further losses, with the next cited support around $2,152, linked to its March 2022 high.
