Zcash's price has been under pressure, falling below $500 as the broader market awaits the release of US Consumer Price Index (CPI) data. This data, scheduled for release later in the day, could significantly impact the Federal Reserve's interest rate decision. The migration of Zcash holdings from the vulnerable Orchard pool to the Ironwood pool has also weighed on retail demand, with concerns about privacy and security in the crypto market due to recent hacks and vulnerabilities. The ZEC futures Open Interest is down almost 2% over the last 24 hours, indicating a reduction in the notional value of active positions. Long liquidation outpaced short liquidation, suggesting a contraction in active long positions. However, the funding rate of 0.0067% reflects persistent retail demand for new long positions at a premium, indicating a buy-the-dip approach from traders. Zcash's technical outlook is positive in the long term, as the price remains above the 100-day Exponential Moving Average (EMA) at $468. The price is currently trading around $480, holding above its 100-day and 200-day EMAs at $468 and $416, respectively. This setup reaffirms the long-term constructive tone, while the price remains below the 50-day EMA at $489, suggesting near-term downside pressure. Zcash is contracting within a symmetrical triangle pattern with two converging trendlines, and it is consolidating between the 78.6% and 50% retracement levels of the upswing from $368 to $589, at $532 and $465, respectively. The Relative Strength Index (RSI) is near neutral territory, and the Moving Average Convergence Divergence (MACD) is slightly negative below the signal line, suggesting that upside momentum is waning in the near term. The immediate support for ZEC aligns with the 100-day EMA at $468 and the 50% retracement level at $465. A decisive close below this level could threaten the rising support trendline near $444, where a breakout could boost downside pressure. Looking up, the 50-day EMA at $489 and the 78.6% Fibonacci retracement at $532 serve as immediate resistances. A sustained break above this cluster would expose the overhead trendline near $540. (The technical analysis of this story was written with the help of an AI tool. Know more. (https://www.fxstreet.com/info/how-fxstreet-uses-ai?utmmedium=internal&utmsource=ai-disclaimer) )
