Zcash price falls 25% after $300 rejection, crash incoming?

Zcash price has lost some of its recent gains after failing to breach the $300 resistance level. Will the token continue to face losses in the days ahead, or can it find support and bounce back?

After rallying more than 300% and hitting a 4-year high of $296.9, Zcash (ZEC) pulled back by around 25%, trading at $222.8 as of the afternoon of Oct. 14 (Asia time). Still, despite the sharp drop, the token remains up over 47% in the past 7 days and is roughly 650% higher than its year-to-date low.

Zcash price started rallying over the past weeks as concerns over blockchain surveillance and government oversight resurfaced, reigniting interest in privacy-focused cryptocurrencies. transactions.

The rally found additional strength after Grayscale announced plans to launch a new fund tracking Zcash. While the firm hasn’t explicitly stated it, many believe it may consider converting the fund into an exchange-traded product if investor demand continues to rise.

Further, ZEC price has benefited from a euphoric crypto market entering the fourth quarter of the year, which is largely considered the most profitable period of the year for the entire sector.

Riding this bullish wave, ZEC hit a four-year high on Sunday, before pulling back as bulls failed to break above the $300 resistance as the crypto market sentiment turned cautious after U.S. President Donald Trump announced a fresh round of tariffs targeting all Chinese imports on Friday, reigniting global trade tensions. 

The move triggered widespread market panic as the market entered an extreme fear zone, contributing to over $20 billion in liquidations across the crypto space.

While U.S. officials have said that negotiations with China are still on the table, with both governments expected to meet ahead of the Nov. 1 tariff deadline, the outlook remains tense with fresh reports today noting that the trade conflict may expand to include commercial ports, with both nations preparing to impose reciprocal port fees on each other’s shipping vessels.

Investors are also treading carefully ahead of Federal Reserve chair Jerome Powell’s speech at the National Association for Business Economics conference in Philadelphia later today. 

Traders remain cautious, hoping to extract fresh clues from Powell’s comments on the Fed’s next policy move, particularly around the timing of potential rate cuts and how the central bank plans to navigate persisting inflation risks amid slowing global growth. Any hint of a more hawkish or dovish shift could have a ripple effect across both traditional and crypto markets.

Zcash price analysis

On the daily chart, ZEC price has slipped below the 78.6% Fibonacci retracement level, drawn from the September 23 low to the recent Oct. 12 peak, signaling a loss of bullish momentum and leaving the door open for a potential deeper correction.

The token is also approaching a descending trendline that has acted as strong dynamic support throughout October. A decisive break below this trendline could trigger an extended downside move, especially if accompanied by rising volume.

Technical indicators also reflected the bearish sentiment prevailing in its market. Notably, the Aroon Down indicator is at 100%, while the Aroon Up has dropped to 0%, a classic setup that suggests a dominant downtrend with little to no recent bullish strength. Meanwhile, the MACD lines show a clear bearish crossover, with momentum fading from the overbought zone to near-neutral levels as of press time.

For now, the key support level to watch is $200, which aligns with the 61.8% Fibonacci retracement. A breakdown below this level could expose ZEC to further losses, potentially targeting the next major support around $170, near the 50% retracement level.

According to the weekly liquidation heatmap, however, a dense cluster of long liquidations sits between the $210 and $200 range, suggesting that buyers may attempt to defend this zone to prevent a deeper selloff. This area coincides with the descending support trendline on the daily chart, adding further confluence to its significance as a short‑term floor.

If the $200 level fails to hold, liquidity thins considerably until around $180, where the next pocket of liquidation pressure begins to build. Such a move could trigger another wave of stop orders and force‑selling before the market finds stability.

On the flip side, if Zcash manages to reclaim and break above $242.46, it could mark a bullish reversal, allowing the token to escape the current downtrend and possibly retest the $270–$290 zone in the short term.