Zcash (ZEC) drops 14% daily: the end of the bull run or time to buy?

ZEC is the worst performing top 100 crypto today (November 18).

The question now is whether this is a good zone to jump on the bandwagon or a crucial moment that marks the end of the rally.

More fuel left?

ZEC was trading around $50 less than two months ago, and perhaps not too many expected what would happen next. The asset’s price began a major bull run, which culminated in early November when it reached a seven-year high of over $730.

In the following days, ZEC followed the broader crypto market’s pullback, and today (November 18) it is the worst-performing digital asset in the top 100, down 14% and currently trading at around $575 (according to CoinGecko data).

Despite the pullback, numerous industry participants remain optimistic that the token’s valuation could recover in the near term. X-user GEM DETECTER in mind a rally above $800 in November, while the analyst went by the nickname Yuna predicted increasing to $1,800 in subsequent months.

Leading digital asset manager, Grayscale, also contributed, but stayed away from outlining forecasts. The organization argued that ZEC “enables private, on-chain transactions” and highlighted its product, Grayscale Zcash Trust, which allows investors to gain exposure to the asset.

Recall that ZEC’s upward move started in early October, when the digital asset manager praised the coin’s use cases and noted that the Trust is “open to private placement for eligible accredited investors.”

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More losses along the way?

Unlike the optimists mentioned above, X user Crypto Tony outlined a bearish forecast. The analyst expected ZEC will drop to $540 in the coming days, provided the price remains below $608.

The Relative Strength Index (RSI), calculated on a weekly scale, also indicates that pain lies ahead for the bulls. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea of ​​potential reversal points.

It ranges from 0 to 100, and values ​​above 70 indicate that ZEC is overbought and ready for a correction. On the other hand, ratios below 30 are seen as buying opportunities. Currently, the asset’s RSI is around 78.