Zcash Price Drops 30% as ZEC Tests Critical $1,120 Support

Zcash (ZEC) is facing growing selling pressure after falling nearly 30% from its late-September peak of approximately $1,700. The cryptocurrency is currently trading near $1,196, putting a crucial technical support level under pressure as traders assess whether the broader bullish trend can continue.

The latest Zcash price decline has brought ZEC close to its 50-day moving average, a key indicator that could determine its next major move. Despite the recent correction, the cryptocurrency remains significantly higher than its August levels, suggesting the pullback could be part of a broader market consolidation.

Technical analysis identifies $1,120 as the immediate support level, following a recent intraday low of $1,123. Additional buying interest could emerge between $1,050 and $1,100, a region where ZEC previously consolidated in September.

If selling pressure intensifies, the next major support levels are the 100-day moving average near $985 and the 200-day moving average around $760.

Meanwhile, Zcash faces immediate resistance at $1,230, followed by $1,290 and $1,350. A sustained recovery above these levels could strengthen bullish sentiment and signal renewed upward momentum.

However, technical indicators suggest caution. The Relative Strength Index (RSI) has dropped below 50, indicating weakening buying momentum. Trading volume has also declined in recent sessions, reflecting uncertainty among market participants.

The latest daily candlestick shows a long lower wick extending toward $1,123, suggesting buyers are defending the current support zone. Nevertheless, ZEC has struggled to recover above $1,230, while its 20-day moving average near $1,290 continues to act as overhead resistance.

For Zcash bulls to regain control, the cryptocurrency must secure a daily close above $1,230 before challenging $1,290. A successful breakout could pave the way for another move toward $1,350.

Conversely, a daily close below $1,120 could trigger further losses toward $1,050, with $985 emerging as the next significant downside target.

Although Zcash's longer-term moving averages continue pointing upward, its short-term momentum remains bearish. Holding the $1,120 support level will be essential for preserving the broader bullish outlook and preventing a deeper ZEC price correction.