Zcash Analysis: Is it the beginning of the correction?

Source: CritpoTendencia Original Title: Analysis of Zcash: Is it the beginning of the correction? Original Link: The price of Zcash (ZEC) exhibited a bearish behavior after weeks of resilience against the overall market decline. Even at times when most cryptocurrencies were retreating, ZEC was advancing. But today the scenario changed abruptly.

At the time of writing, ZEC is trading at $626, with daily losses of 10.5%, weekly gains of 8.8%, and an impressive monthly increase of 143%. The daily bearish pressure reflects what is happening in the rest of the crypto market:

BREAKING: $2 billion in long positions have been liquidated in the last 24 hours. This is a level of wealth destruction that is insane.

What is behind the current declines of ZEC?

Various factors are influencing the decline of ZEC and the crypto market in general.

One of them is the release of the U.S. employment report for September ( delayed by the government shutdown ), which added pressure on risk assets.

The report showed an increase of +119,000 non-farm payrolls, surpassing expectations (+100,000). At the same time, the figure for August was revised upward to +89,000. However, the unemployment rate unexpectedly rose to 4.4%, its highest level in four years.

This data set considerably reduced the likelihood that the Federal Reserve will implement aggressive rate cuts in the coming months. The option for a 50 basis point cut in December fell from 65% to 22%, according to Goldman Sachs.

The growing global aversion to risk and the expectation that the Fed will delay rate cuts are putting additional pressure on digital assets, including ZEC. Meanwhile, BTC is strongly retreating towards $80,600 and ETH is falling to $2,700.

Not only did cryptocurrencies experience significant declines. Wall Street also recorded important setbacks following the labor data, while the dollar strengthened again to 100 points.

Finally, one element with possible bullish impact stands out: with the Network Upgrade 6.1, Zcash will halve its emissions and redistribute part of the block rewards. This upgrade is scheduled for November 24, when the network will enter its deflationary phase.

Analysis of ZEC charts: important levels to watch

In the short term, ZEC shows an inverted head and shoulders pattern, a figure that is usually associated with a potential upward movement. In the medium and long term, the trend continues to be favorable for buyers.

Resistance levels to watch:

• $645: immediate resistance and daily maximum.
• $655: midpoint that coincides with the EMA 100.
• $716: highest from November 20 and strongest resistance.

Supports to watch:

• $600: daily minimum and psychological support that could strengthen if the price maintains its structure.
• $546: key level aligned with the lows of November 18.
• $500: psychological support and likely last bearish target after the loss of $546.

The RSI at 42 points indicates a strong battle between bulls and bears, with a slight advantage for the latter. This suggests that there may be a stagnation in the short term.

Important data to take into account for ZEC

Despite the recent correction, Zcash maintains annual gains of 1.278% and a cumulative increase of 3.893% since its lows of $15.97.

Cypherpunk Technologies recently acquired ZEC tokens for about 18 million dollars, paying an average of $602.63 per unit. This purchase adds to a previous acquisition of 203,000 ZEC made by the same firm.

The Winklevoss twins are betting big on Zcash (ZEC), recently purchasing 18 million dollars in the cryptocurrency. The twins' company, Cypherpunk Technologies, is a digital asset treasury company focused on this type of privacy coin.

The CoinMarketCap fear and greed index stands at 11 points, reflecting an extreme level of fear in the market.

Finally, the total capitalization of the crypto market fell below 3 trillion, dropping to 2.89 trillion, which represents a decline of 6.8% in the last 24 hours.