$ZEC dropped nearly 10% in a single day, sliding from 1,285 all the way to 1,125. The entire post-CPI bounce has been wiped out.
This selloff really comes down to two things: the macro picture and issues specific to ZEC. On the macro front, hotter-than-expected CPI has put the whole market in risk-off mode, with BTC still hovering around $81,000. ZEC surged from around $500 to $1,698 over the past two months. When an asset has rallied that hard, profit-taking can weigh heavily—and it’s now down 30% from its late-September high.
The issue specific to ZEC is that Grayscale’s spot ZEC ETF (ZCSH) has seen net outflows for two days in a row, with $5.19 million flowing out just yesterday. When money leaves the ETF, it adds another layer of selling pressure to the market.
As for key levels, the blue moving average at 1,190 has already broken, and price is now testing the 1,130–1,140 range. The 1,000 level is the next support below, with the orange moving average at 990. On the flip side, a daily close back above 1,285 would be the first sign that this selloff has stabilized.
There’s no point trying to catch a falling knife here. Best to take it one step at a time.
#ZEC #MarketAnalysis
This selloff really comes down to two things: the macro picture and issues specific to ZEC. On the macro front, hotter-than-expected CPI has put the whole market in risk-off mode, with BTC still hovering around $81,000. ZEC surged from around $500 to $1,698 over the past two months. When an asset has rallied that hard, profit-taking can weigh heavily—and it’s now down 30% from its late-September high.
The issue specific to ZEC is that Grayscale’s spot ZEC ETF (ZCSH) has seen net outflows for two days in a row, with $5.19 million flowing out just yesterday. When money leaves the ETF, it adds another layer of selling pressure to the market.
As for key levels, the blue moving average at 1,190 has already broken, and price is now testing the 1,130–1,140 range. The 1,000 level is the next support below, with the orange moving average at 990. On the flip side, a daily close back above 1,285 would be the first sign that this selloff has stabilized.
There’s no point trying to catch a falling knife here. Best to take it one step at a time.
#ZEC #MarketAnalysis