Key takeaways
- ZEC is still struggling under the $477-$500 zone.
- Although momentum indicators show signs of stabilization, Zcash remains vulnerable to further downside as investors react to persistent macroeconomic uncertainty and rising rate-hike expectations.
Zcash (ZEC) remains under pressure on Thursday as bearish sentiment continued to dominate the cryptocurrency market. ZEC is facing mounting resistance beneath the $500 mark as investors reduce exposure to risk assets.
Fed’s policy stance causes a negative market reaction
The broader crypto market weakened following remarks from Federal Reserve Chairman Kevin Warsh during his first post-meeting press conference on Wednesday.
Although the Federal Open Market Committee (FOMC) kept interest rates unchanged, in line with expectations, investors reacted negatively to the central bank’s firm commitment to bringing inflation back to its long-term 2% target. The Fed’s emphasis on price stability signaled that policymakers are not yet prepared to pivot toward monetary easing.
Warsh’s comments reinforced expectations that higher interest rates could remain in place for longer. Market participants are even assigning a roughly 30% probability to a future rate hike, reviving concerns about tighter financial conditions and reduced liquidity for risk assets.
Investor confidence weakened further as the Crypto Fear & Greed Index fell to 15 on Thursday from 22 a day earlier, remaining firmly within the “Extreme Fear” zone. The reading highlights growing caution among traders and suggests subdued market participation in the near term.
ZEC price forecast: Zcash faces growing downside risks
Zcash has also remained on the defensive, recording three straight days of losses while trading below its 50-day EMA near $477.
The continued inability to reclaim this level has reinforced bearish sentiment and increased the likelihood of further downside.
A sustained move lower could encourage additional de-risking among traders, placing the spotlight on key support zones near $434 and $376.
While the MACD histogram remains marginally positive, suggesting some recovery attempts may be forming, the Money Flow Index remains in the mid-40s, indicating relatively weak buying momentum compared with Monero.
The immediate resistance level remains the 50-day EMA at approximately $477. If buyers manage to regain control, attention could shift toward the upper boundary of the descending channel near $549.
On the downside, support is located near the 100-day EMA around $434, followed by the 200-day EMA near $376.
Should bearish pressure intensify, the lower boundary of the descending channel near $279 could emerge as a critical medium-term support zone.
