Zcash price rise and fall explained by a 100-year market theory

Zcash, like other privacy tokens, remained in a tight range because of regulations and the fact that many exchanges delisted it.

Therefore, the Zcash price was in the accumulation phase, which is characterized by sideways movements. It entered the markup phase in September, a move that was sparked by Grayscales Zcash fund application.

Now, the token has entered the distribution and markdown phases. These phases started when the token formed a double-top pattern at $740, leading to panic selling among holders.

It has now formed the three black crows pattern, which is characterized by three consecutive bearish candles.

Looking ahead, the token may experience a relief rally now that it has retested the important support at $305, its highest point in November 2021. This may happen ahead of the approval of the Grayscale ZEC ETF by the SEC.

Such a rebound will likely be a dead-cat bounce, which happens when an asset in a freefall experiences a brief rebound and then resumes the downtrend.

A drop below that support will point to more downside, potentially to the next key support level at $2152, its highest point in March 2022.