Zcash price drops below $240 on profit taking: what’s next for ZEC?

• The price of Zcash dropped by almost 10% in the last 24 hours.
• The ZEC token changed hands at around $239 as bulls risked major support.
• Is the dip a good combination move or trigger a deeper correction?

Zcash (ZEC) pulled back sharply on Thursday, down nearly 10% in today’s session as its multi-month high near $280 is in danger of being wiped out.

The cryptocurrency traded as low as $239, with the return coming amid a volatile shift in crypto markets.

Profitability across the board means that ZEC’s recent breakout could lead to bearish support at the $230 level.

Can the bulls catch on support, or is Zcash price on the verge of a deep correction?

Why is the price of Zcash down today?

Zcash’s slide from the $280 level shows a consolidation of several short-term items.

Gradually, it is the world’s investors and political center.

Bitcoin, for example, is struggling to maintain a value of more than $70k, and similar sentiments are affecting the top altcoins, including Ethereum, Solana, BNB, and XRP.

The key idea is to take advantage in the midst of great uncertainty.

ZEC features in the middle of network development

Zcash’s price has shown resilience amid interest in cryptocurrency, with the recent rise to $280 supporting this sentiment amid Zodl’s activity.

Despite the return to $239, bulls remain positive as on-chain metrics show the growth of the network.

For example, Zcash’s hashrate has reached a new high of 16.54 GS/s.

Meanwhile, securities have risen to 5.15 million ZEC, which accounts for about 31% of the money in circulation.

The number of protected products reflects the importance of private products.

More importantly, a large portion of ZEC is moving away from crypto exchanges, indicating long-term stability.

Stronger online security and increased interest in private transactions provide a two-pronged approach, and may raise the value of ZEC.

Technical picture of Zcash

From a technical point of view, the daily chart of ZEC shows a mixed trend with oscillators and a move that is not leaning sideways to sell.

Current data shows that the appetite for risk can allow a clean explosion up to $300.

In this case, the bulls need to turn $240 into a support base, with the 50 EMA at $262 crucial.

Another move in focus will bring the 200 EMA ($281) to the fore.

Above these levels is $300 and the 100 SMA at $339, which would be a key area if the bulls are looking for the $500 target.

The sharp pullback of Zcash after the spike to $280, therefore, gives the bulls an opportunity to pump amid the wave of weak hands.

However, if short-term selling continues amid the crypto’s major weakness, the coin’s price may drop to $206 and then $185.