Growth Fears and Geopolitical Risk Drive Sharp Decline in Zcash

Yesterday, Zcash plunged, tracking a broad sell-off in digital currencies, as rising anxiety over economic growth prompted a general retreat from risk.

The downturn initiated late Wednesday and gained intensity following a New York Times story that the US and Israeli forces had drawn up specific strategies for possible attacks on Iran after the midterm elections. The same article noted that Washington is building up its military in the area, with reinforcements scheduled to reach full strength by early November.

The threat of renewed direct conflict between the US and Iran, together with mounting unease over economic expansion and the Federal Reserve's need to maintain a restrictive policy due to inflation, put heavy pressure on the crypto market.

The US Flash PMIs due today are expected to act as an additional major influence. Weak figures might aggravate growth worries and cause a new drop in Zcash, whereas stronger numbers might temporarily soothe growth anxieties and spark a bounce. Still, any rally would likely prove fleeting, because the data cannot alter the overall negative environment.

Zcash: Daily Timeframe Technical Overview

Zcash gave back the bulk of its weekly advance on Thursday within the broad risk-off mood. Should the price fall again to the 1,031 support area, buyers are anticipated to enter, accepting defined risk below that level to set up a climb toward 2,000. Sellers, conversely, will seek a drop through the support to push bearish wagers toward 800.00.

Zcash: 4-Hour Timeframe Technical Breakdown

The price broke above a falling trendline and rose to the important 1,350 level before reversing. A return to 1,350 would likely bring sellers in, who would take defined risk above that point to aim for a decline to the 1,031 support. Buyers, on the other hand, need the price to push higher to ramp up bullish wagers toward 2,000, with the 1,692 high as the initial milestone.

Zcash: 1-Hour Timeframe Technical Insight

The price fell through a rising trendline that had been supporting the bull run. Sellers moved quickly on that break, aiming to drive the price down to 1,031, but the rate began to stabilize alongside the trendline. If the recent low near 1,185 gives way, sellers are expected to step up bearish wagers toward uncharted lows. Buyers, for their part, require the price to climb back above the trendline to begin setting up a recovery to the 1,350 resistance.

Future Market Catalysts

The week finishes today with the release of the US Flash PMIs.