7 Key Reasons Zcash (ZEC) Crash Risk of up to 30% Threatens Crypto
Jakarta, Pintu News – Zcash (ZEC) is one of the privacy-focused cryptocurrencies that briefly showed a sharp rally in 2025, but recently faced significant price pressure that triggered the risk of a crash of up to 30 percent from key support levels. This movement has raised concerns in the crypto community about the sustainability of ZEC’s price trend and the technical factors and sentiment driving market direction.
1. Technical Breakdown Triggers Fall Risk
Recent chart analysis shows Zcash has broken out of a technical breakdown zone, specifically when the price dropped below an important pivot point and an active head-and-shoulders pattern provided a projected drop of up to 30 percent. This structure is the primary basis for crash risk as it triggers continued bearish momentum in the short-term charts.
The loss of this support level is compounded by the EMA breakdown on the 12-hour time frame to the 200-EMA which was previously a trend-breaker, thus further strengthening the selling pressure. The combination of bearish patterns and technical indicators weakens the potential for a quick rebound without fresh positive sentiment.
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2. Investor Sentiment Loosens
Market sentiment towards ZEC slumped drastically in recent days, reflecting a decline in investor confidence in the near-term outlook. The drop from strongly positive sentiment to almost zero indicates a lack of market conviction, triggering continued selling pressure in the spot and derivatives markets.
The weaker sentiment also affected the behavior of retail investors, who tended to reduce risk-on positions faster than large players, magnifying short-term volatility due to uncoordinated reactions among trader groups.
3. Whale Accumulation vs Retail Distribution
Despite weakening general sentiment, on-chain data shows different behavior among whales (large holders). The largest addresses actually increased their ZEC holdings amidst the price drop, signaling long-term accumulation.
This phenomenon reflects the difference between the speculative strategies of retailers who tend to sell quickly and whales who use moments of volatility to buy at lower prices, so the price dynamics of ZECs are affected by two conflicting investor styles.
4. Bearish Pressure from Technical Indicators
In addition to the price figure patterns, indicators such as exponential moving averages have also been showing negative short-term signals. A price drop below important EMA lines signals the overall market momentum is in favor of the bearish side.
This pressure is reinforced by other negative signals such as the downward divergence in money flow and RSI in some of the latest technical analysis, which explains that even if prices stabilize or strengthen slightly, capital outflows are more dominant than inflows.
5. Uncertainty After Developer Team Split
One of the drivers of Zcash’s recent volatility has been news of a split in the core developer team, creating uncertainty about the direction of technical development and long-term network support.
As the market interpreted the news as an operational risk, investment interest in ZEC temporarily declined, triggering a price drop faster than the previously anticipated rebound.
6. Wider Crypto Market Pressure
In addition to Zcash’s internal factors, the general pressure on the crypto market, the majority of which is still experiencing high volatility, also has an impact on ZEC prices. Decreased liquidity in altcoins often exacerbates price pressure in smaller-cap crypto assets.
The correlation between broad crypto market sentiment and the price of Zcash was seen when there was a large sell-off in other digital assets, pulling capital out of altcoins in favor of assets that were seen as safer.
7. Technical Recovery Scenario
Although many technical indicators point to downside potential, some analysts also see key support levels on the chart as potential rebound points if prices are able to hold and recover momentum.
This rebound is likely to depend on ZEC’s ability to close above certain critical levels on the chart, which could change the pressure from bearish to neutral or bullish in the short term.
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Reference
BeinCrypto. Zcash Slips Into a 30% Breakdown Zone: What Went Wrong with ZEC? Accessed January 12, 2026.