Zcash price action signals potential 20% drop as it tests the descending trendline

At press time, Zcash (ZEC) was up 3.25% over the past 24 hours. Alongside the price increase, trading activity strengthened, with trading volume rising by more than 32% to $267 million. Despite the uptick, the latest price action suggests the asset may be vulnerable to a renewed decline.

ZEC price action signals possible 20% fall

On the daily chart, ZEC appears mildly bearish, with the current level described as a make-or-break point due to a history of sharp reversals. The chart indicates that after an attempted rebound in February 2026 failed, ZEC has remained in a downtrend, facing resistance from a descending trendline.

According to the analysis, when ZEC has reached this resistance level in the past, it has tended to experience sharp declines. If ZEC fails to break above the prolonged descending trendline, the article says there is a high possibility the pattern could repeat, potentially leading to a drop of more than 20%, with a move toward the $200 level.

Key levels and momentum indicators

The bearish outlook could be invalidated if ZEC breaks out of the trendline and closes a daily candle above $260. In addition, the Average Directional Index (ADX) has fallen to 17.95, below the key threshold of 25, indicating weak momentum.

Another cited view highlights the $173 to $199.55 zone as a key level for ZEC. If the price fails to hold this range, the article notes that the next major demand area is between $54.18 and $79.91.

The same source also said bullish sentiment remains supported by ZEC’s privacy-focused utility, low transaction costs, and growing relevance in decentralized finance and privacy-preserving payments.

ZEC investor sentiment turns bearish

Derivatives data from CoinGlass suggests traders are aligning with the bearish price outlook. The latest figures identify $238.9 on the lower side and $257.2 on the upper side as major liquidation levels.

At these levels, traders have built $5.91 million worth of long leveraged positions and $7.91 million worth of short positions, indicating positioning that could favor further downside.

The article also points to activity among long-term holders. On April 5, 2026, ZEC’s spot inflow/outflow metric showed $1.02 million worth of ZEC moving into exchanges, which it frames as potential preparation for a sell-off.

Final summary

• Zcash rose over the past 24 hours, but the technical setup suggests a risk of a 20% decline if ZEC fails to breach its descending trendline.
• Derivatives positioning and exchange-flow data point to a bearish tilt, with traders building more short exposure and some long-term holders moving assets to exchanges.