Zcash has taken quite a hard hit over the past few days, and right now it’s hanging at a pretty critical spot. The sellers are clearly in control, while the bulls are having a tough time holding the line. The next few key signals should basically reveal the direction going forward.

Let’s talk about the current level—ZEC is testing a strong support zone, roughly in the $350 to $370 range. This price range has seen frequent trading activity in the past, making it a high-volume area.

Looking ahead, the $700 mark has proven to be a major hurdle. Zcash has tried several times to break through but got rejected every time, which directly led to a trend reversal. Honestly, the previous rally was too fast and aggressive, and pushing above $700 already carried significant risk. Now, every time the price nears that historical resistance area, it gets pushed back down.

As selling pressure intensified, the price broke below the ascending trendline, clearly weakening the structure. It then continued to drop, falling right into the gap left by the rally back in October.

In the short term, there might be a technical rebound with a target around $400 to $450, but it’s likely that the downtrend will continue afterward. The overall structure is weak, so it’s really important to stay alert during this period. The key is whether buyers can withstand this wave of selling—if they can’t, things could get even worse.

Currently, the market’s focus is mainly on the performance of two liquidity zones. ZEC has already successfully retested liquidity zone 2 near $370, which is basically in line with previous expectations.