Important requirements
- ZEC is still struggling in the $477-$500 zone.
- Despite the signs of stability, Zcash remains vulnerable to further volatility as investors face economic uncertainty and rising expectations.
Zcash (ZEC) remains under pressure on Thursday as bearish sentiment continues to dominate the cryptocurrency market. ZEC is facing interest rates below $500 as investors reduce exposure to risk factors.
The Fed’s policy stance causes the market to be negative
The broader crypto market weakened following comments from Federal Reserve Chairman Kevin Warsh during his first press conference on Wednesday.
Although the Federal Open Market Committee (FOMC) kept interest rates unchanged, in line with expectations, investors reacted strongly to the central bank’s firm commitment to returning inflation to its long-term target of 2%. The Fed’s emphasis on price stability showed that policymakers were not yet ready for monetary policy.
Warsh’s comments fueled optimism that higher interest rates could last longer. Market participants are also allocating a 30% chance of future rate hikes, raising concerns about the financial crisis and declining financial markets.
Investor confidence weakened significantly when the Crypto Fear & Greed Index fell to 15 on Thursday from 22 the previous day, remaining firmly within the “Very Fear” zone. The reading shows a high level of caution among traders and indicates a recent bear market trend.
ZEC price prediction: Zcash faces growing risks
Zcash has also been on the defensive, recording three straight losing days while trading below its 50-day EMA near $477.
The continued failure to recover from this level has strengthened the bearish sentiment and increased the chances of a return to the bottom.
A sustained decline could also encourage risk aversion among traders, focusing attention on key support levels near $434 and $376.
While the MACD histogram is still slightly positive, indicating that another retracement is likely, the Money Flow Index remains in the mid-40s, indicating a weak bullish trend compared to Monero.
The same resistance remains the 50-day EMA around $477. If buyers can regain control, interest may move to the upper limit of the downtrend near $549.
On the downside, support is near the 100-day EMA near $434, followed by the 200-day EMA near $376.
If the bearish pressure increases, the lower limit of the downward trend near $279 may appear as an important long-term area.
