Zcash Price Breaks Down Below $500, Bearish Pattern Hints At 27% Decline Ahead

Core Insights - Zcash (ZEC) has experienced a significant price decline, confirming a bearish ascending wedge pattern, which has pushed the asset into a corrective phase [1][8] - On-chain data indicates that some investors may be positioning against a deeper collapse, despite the current downside risk [1] Price Movement and Liquidation Risks - Derivatives data shows increasing stress among long-position traders, with a potential liquidation cluster around the $430 level, which could trigger forced closures worth approximately $28.46 million [2][4] - Liquidations can accelerate price declines as leveraged positions unwind, leading to a shift in sentiment towards bearishness and increasing short interest [3] Market Indicators and Potential Recovery - The Chaikin Money Flow (CMF) indicator is showing a bullish divergence, suggesting institutional accumulation despite the price weakness [5][6] - A rising CMF during falling prices indicates that larger holders may still be adding exposure, which could slow selling pressure if market conditions improve [7] Current Price Status and Projections - ZEC is currently trading near $453, down approximately 9% over the past 24 hours, having broken below the $500 psychological support level [8] - If accumulation strengthens, ZEC may bounce off $442 and attempt to reclaim the $500 level, which could lead to a move towards $550 [9] - However, technical projections suggest a potential 27% correction, with a possible decline towards $363 if sustained selling pressure continues [10]