Zcash has slipped through a key historical support, and the move is putting the market on edge ahead of the Dec. 23, 2025 daily close. With price action leaning decisively lower, traders are treating this as a potential continuation signal rather than a routine dip.
What the charts and positioning are signaling
ZEC failed to hold the 50-day exponential moving average (EMA), a commonly watched trend line that often acts as support in stronger uptrends. Earlier breaks of the same 50-day EMA on Nov. 30 and Dec. 14, 2025 were followed by sharp sell-offs, which is why this level is being treated as a high-stakes marker again. The current technical picture is also being read as bearish, with a rising wedge, a bearish pennant, and a double-top pattern that references a neckline at $425, while both RSI and MACD are trending down.
The broader context reinforces the cautious tone. ZEC is down about 43% from this year’s peak, which makes the current breakdown look like downside continuation rather than a quick volatility event. From this viewpoint, a clean daily close below the 50-day EMA would be interpreted as the market shifting from consolidation into a more active downtrend phase.
Positioning data adds weight to the bearish case. Derivatives activity shows a clear tilt toward net short exposure among large participants, a setup that can accelerate declines when momentum turns one-way. Spot-side signals also point to potential sell pressure, with Solana-based ZEC markets showing a reported one-day jump of more than 47% in exchange balances—typically read as tokens moving closer to liquidity venues.
Technicians are also anchoring the move to Fibonacci levels. If ZEC cannot reclaim the key retracement zones, the bias stays negative and support levels become the main roadmap rather than upside targets. In that framework, the first major line sits near $410.
The near-term levels are now straightforward. If $410 fails, the next downside waypoint is $371, which aligns with the roughly 10% additional drop being discussed for the immediate scenario. Beyond that, deeper supports are cited at $305 (around the 61.8% Fibonacci retracement), then $295 and $250 if selling pressure compounds. On the flip side, invalidating the bearish setup would require reclaiming the 50-day EMA and then pushing decisively above $470, with $549 and $592 as higher hurdles that would signal a more meaningful trend repair.