Key takeaways:
ZEC charts mirror BNB’s pre-crash parabola, hinting at a potential correction to the $220–$280 range next.
Analysts warn of “pump-and-dump” dynamics amid paid promotions, although some crypto veterans remain bullish long term.
Zcash (ZEC) has dropped about 30% from its November peak of $750, raising fears of deeper losses ahead, with some analysts warning of a potential “pump-and-dump.”
Symmetrical triangle hints at 50% ZEC price drop
As of Monday, Zcash traded within a symmetrical triangle pattern on the four-hour chart, reflecting indecision among traders following its 1,500% price rally since late September.
The setup also followed a rebound from the 200-4H exponential moving average (200-4H EMA; the blue line), a key support trendline, suggesting a possible move toward the triangle’s upper boundary near the 0.786 Fib level at $686 in November.
Symmetrical triangles can break either way, depending on the broader market sentiment.
In ZEC’s case, the market sentiment remains fragile, pressured by uncertainty over Federal Reserve rate policy and stretched AI sector valuations, which are hurting risk assets.
Thus, a breakdown below the triangle’s lower trendline appeared to be the most likely outcome if prevailing macroeconomic conditions persist in the coming weeks.
Such a move could push ZEC toward its $282 downside target, which is approximately 50% below current levels, by early 2026.
The level aligns with the local tops established in early October, as well as the 20-period EMA (represented by the green wave) on the weekly chart.
BNB parabola warns of 60% Zcash price correction
Zcash’s current structure resembles the parabolic rise and breakdown previously seen in BNB (BNB) before its steep correction, according to trader Nebraskangooner.
Much like BNB’s 2021 setup, ZEC has lost momentum after an overextended rally. Its price failed to reclaim its parabola support, as anticipated by Zcash bulls who projected a $1,000 target earlier in November.
As NebraskanGooner noted, such patterns often preceded deeper retracements of at least 60%. That brings ZEC’s potential downside target to the $220–$280 range.
Analysts back pump-and-dump narratives
Adding to bearish sentiment, Mark Moss, a Bitcoin-focused venture capitalist and educator, shared screenshots of outreach messages from marketing agencies offering paid ZEC collaborations.
Market analyst Rajat Soni cautioned that the recent hype around ZEC may be an effort to “find exit liquidity,” citing fabricated headlines that falsely claimed Fidelity analysts predicted Zcash could hit $100,000.
Against the bearish tide, crypto bigwigs, such as BitMEX founder Arthur Hayes and Gemini co-founders Tyler and Cameron Winklevoss, remain bullish on Zcash, with the former expecting ZEC price to hit $10,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
