Zcash Drops 8.9% to $1,134 as TD Sequential Sell Signal Triggers Profit-Taking

Zcash USD fell 8.9% to $1,134.01 in 24 hours as a widely cited TD Sequential sell signal prompted profit-taking from traders riding the coin’s 2,260% yearly surge. Derivative market liquidations below the $1,200 support level amplified the decline. The move leaves ZEC testing critical support near $1,170, with technical indicators flashing extreme overbought conditions despite the sharp drop.

Why the TD Sequential triggered a sell-off

Ali Martinez’s TD Sequential signal, which historically preceded a 64% correction in May, combined with ZEC’s over 2,000% yearly gain to spark a wave of profit-taking. The signal warned that the explosive rally had exhausted its near-term fuel. Derivative traders with long positions faced margin calls as the price broke below $1,200, triggering stop-losses and cascading liquidations that deepened the sell-off.

What the technical indicators reveal now

The RSI sits at 87.51, deep in overbought territory, yet the price has already fallen 8.9%. The MACD histogram remains positive at 46.17, suggesting momentum is still upward despite the pullback. The ADX at 50.68 shows a strong trend, and price remains well above the Bollinger Band lower support at 346.95, sitting near the middle band at 797.03. These readings indicate the move is extended and a relief bounce is possible.

Zcash price forecast signals deeper correction ahead

Meyka’s one-month forecast stands at $778.39, implying a 31.4% decline from the current price. The 12-month forecast of $260.09 suggests a 77.1% drop, reflecting expectations of a prolonged correction after the historic rally. These projections assume continued selling pressure and normalization of valuations. Forecasts may change due to market conditions, regulations, or unexpected events.

Support level holds the key to the next move

ZEC is now testing support near $1,170. If this level holds, a relief rally could target the $1,240 to $1,260 resistance zone. A daily close above $1,200 would signal that short-term bearish pressure is easing. Broader crypto sentiment, particularly Bitcoin ETF outflows, will determine whether ZEC can stabilize or faces further selling.

Final Thoughts

Zcash’s 8.9% drop reflects a classic overbought correction triggered by technical sell signals and leveraged unwinding. With RSI at 87.5 and price still above key moving averages, the data points to an extended move that could bounce, but the primary trend has shifted to correction.

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Disclaimer:

Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.