Zcash Tests $200 Support as 8% Decline Intensifies

Zcash breaches $250, faces a potential dip toward $200 as bearish momentum grows and buy-side liquidity wanes.

2026-03-07

Zcash faced rejection at $251 and lost the $250 support level shortly after. Since then, the altcoin has closed at lower lows for three consecutive days, reaching a low of $205. At the time of writing, Zcash (ZEC) was trading around $207, down 8.29% on the daily charts. Following an extended bearish streak across the market, Zcash holders started to close their positions while speculators stepped back.

In fact, the market saw higher sell-side volume, as evidenced by the Spot Taker CVD. The altcoin faced massive selling pressure below $250 as short-term holders capitulated and began closing positions. In the last 2 days alone, downside pressure, as sellers defended $210, contributed to a significant decline and repelled any attempt to move above it. The hike in accumulation provides ZEC with much-needed relief and could help the altcoin avoid further declines.

Often, higher buying pressure helps absorb market pressure, boosting asset’s upside potential. Therefore, if demand becomes significant and finally manifests in the market, ZEC could see a trend reversal and reclaim its short-term resistance at $238. However, if the prevailing trend continues, with sellers overwhelming the market, Zcash is likely to breach the $200-support and drop towards $185. Zcash’s bearish streak is persisting, with the altcoin dropping by 8.29% to a low of $205.

ZEC saw low buy-side liquidity and intense selling pressure, threatening a dip below $200. The altcoin’s momentum indicator was indicative of this bearishness. The Demand Index also fell into the negative zone. It had a reading of -25, hinting at a weaker demand relative to supply.

With the index negative and trending downward, it further seemed to support the ongoing market decline. Historically, such market conditions have preceded lower prices too. Despite the sustained market weakness, some investors on exchanges have taken the opportunity to accumulate at a discount.

CoinGlass revealed that over $48.3 million flowed out of exchanges compared to $43.9 million in inflows over the past 3 days. This period coincided with a significant drop in ZEC’s price charts, with the same highlighting greater dip buying.