Zcash falls as hawkish Fed repricing and geopolitical uncertainty weigh on sentiment

Zcash traded sharply lower on Tuesday after the crypto market was weighed down by a hawkish repricing stemming from Fed Governor Waller's comments and a higher-than-expected US CPI reading.

Fed Governor Waller had indicated he would back a December rate hike irrespective of the inflation figures and even floated a 50 basis point move if October data surprised to the upside.

October's CPI indeed topped forecasts, raising the odds of a 50 bps increase. After the release, Fed's Hammack also left the door open for a bigger rate rise. Traders presently assign just a 12% probability to a 50 bps hike, though that could climb if additional Fed officials back it or stop discounting the idea.

US-Iran talks remain deadlocked. The WSJ reported that Vice President Vance is mulling direct discussions with a senior Iranian security official to end the conflict.

Separate reports indicate senior Iranian figures think the US is planning more military action or tightening economic steps. Mistrust between the parties remains deep, reinforcing the view that a diplomatic solution is further off than markets had assumed.

Zcash is expected to stay under pressure given the dark macro picture, with hawkish Fed bets and geopolitical doubt capping gains. Dovish signals from the Fed or a US-Iran breakthrough could brighten mood and spark a crypto relief rally.

Zcash Daily Chart Technical Analysis

The daily chart shows Zcash recently broke below the 1,031 level, opening the path to the main upward trendline near 800. Should the price reach that area, buyers are expected to step in, accepting risk below the trendline, to aim for a rally toward 2,000, with 1,031 as the initial target. Sellers, conversely, are watching for the price to break lower to press bearish wagers down to the 500 level.

Four-Hour Chart Analysis for Zcash

The four-hour chart features a descending trendline defining the bearish flow. If a pullback occurs, sellers are expected to lean on that line, taking risk above it, while maintaining the major upward trendline as their target. Buyers will seek a breakout higher to join in for a rally toward the 1,380 resistance.

Technical Analysis of Zcash on the 1-Hour Frame

On the one-hour timeframe, sellers possess a more favorable risk-to-reward configuration around the trendline, while buyers require a breakout to enter for a move toward the 1,380 resistance. The average daily range for today is outlined by the red lines.

Catalysts on the Horizon

Jobless claims data from the US is due today. The week closes with US PPI figures tomorrow.