Zcash’s bulls fail amidst a sharp market dip

Zcash (ZEC/USD) is among the few coins that had managed to make a slight gain during the past 24 hours. However, the strong recession in the market prevented the coin from making additional gains and maintaining the uptrend. As such, ZEC has retreated dangerously towards the red zone.

The sharp decline in ZEC and most of the market comes amidst Bitcoin’s retreat towards $45K. Bitcoin testing this critical support has ignited selling pressure in the market.

ZEC makes a bearish reversal

On December 20, ZEC had attempted to make some slight gains. The privacy coin broke out past $160 and tested the next resistance at $162. However, the buying pressure was not strong enough to help ZEC climb towards the weekly high of $165.

As aforementioned, the dip stems from a recession in the broader crypto market. It is expected to continue, given that ZEC is yet to erase most of the gains made when the market attempted to gain in late November.

The end of the downtrend could be marked at $100. In October, ZEC was trading at these low levels before the market made a strong bullish rally. Therefore, the failure of the market to make a strong recovery could see ZEC heading towards these lows in the coming weeks.

The gains in late November came when the Zcash network announced that it would be switching to a proof-of-stake protocol. PoS is a more scalable and eco-friendly consensus.

Could ZEC break free past resistance?

On the upside, we have seen the market recover several times this month, and a slight recovery is imminent. In this case, the coin could push towards the higher resistance at $170, and if it holds such highs, it could set the next target at $200.

However, such gains could only come if there is enough market support and buyers jump in to attempt to make a recovery. If Zcash can transition to PoS by conducting several upgrades to the protocol, traders could be in for major gains because the price could eye $300.

ZEC has attempted to rally towards $300 twice this year, in May during the market bulls and in November after news of transition to a PoS.