Zcash Loses 70% of Trading Activity in Three Weeks as $200 Slide Accelerates

Zcash (ZEC) is experiencing a significant bearish trend, falling over 44% in the past month, despite a nearly 700% year-on-year gain. This decline is underpinned by a technical head-and-shoulders breakdown completed on January 31, which sets a primary downside target near $200. Concurrently, centralized exchange trading volume for Zcash crashed by approximately 70% over three weeks, falling from over $1.5 billion on January 9 to about $450 million on February 2, signaling fading trader interest and weaker liquidity. Capital flow indicators, like the Chaikin Money Flow (CMF), have turned negative, indicating that outflows now exceed inflows, reinforced by a 64% surge in exchange reserves as holders move coins to sell. Although 'smart money' wallets slightly increased holdings, this accumulation is currently overwhelmed by widespread selling pressure from large holders who reduced exposure by over 35%. The immediate support lies near $262, with the $200 level being the main technical objective; reclaiming $289 is necessary for any meaningful short-term bounce.

(Source：BeInCrypto)