Zcash (ZEC) Plummets 26% in 24 Hours: To Sell or Not to Sell?

"ZEC to $10K or $10," Hayes asked.

The popular privacy coin Zcash (ZEC) has become a sensation in the past few months, with its price skyrocketing by triple digits.

Over the past 24 hours, though, it experienced a sharp correction, leaving investors wondering whether the impressive bull run has come to an end.

Dumping or Reloading?

Earlier this month, ZEC exploded well above $700, reaching its highest point since the beginning of 2018. However, as of press time, it is worth around $485, representing a 26% decline on a daily scale.

ZEC Price, Source: CoinGecko

Following that retreat, crypto X is buzzing with traders and analysts speculating about ZEC’s next move. One of those is Arthur Hayes, the co-founder and former CEO of BitMEX, who said the big question now is whether to sell or not.

Hayes is among the individuals who have outlined some of the most optimistic price predictions for ZEC during the upward momentum of the past weeks. Last week, he envisioned the rise to $1,000, whereas previously, he had set the somewhat absurd target of $10,000.

Meanwhile, Maelstrom (an investment fund run by Hayes) is heavily invested in ZEC. Just a few days ago, the American revealed that the cryptocurrency has become the entity’s second-largest liquid holding, trailing only behind Bitcoin (BTC).

The X user Degen Sing also weighed in on the matter. According to the analyst, ZEC is not dumping but reloading, arguing that this is a “textbook mid-trend pullback before continuation.”

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“Next major resistance is sitting around $750 – and we already touched it once. All it takes is BTC flipping back to $110, and ZEC will rip straight through that resistance like butter,” they added.

X user Hardy presented a rather pessimistic forecast, claiming that if the asset can’t hold the line at $487, it might plummet to $344 or even $235. As mentioned above, the price has already dipped below that level.

Privacy Coins Head South

It is worth noting that ZEC’s recent decline aligns with the broader downtrend affecting the entire privacy coin sector. Monero (XMR) is down 9% for the day and trades at around $380, whereas Dash (DASH) has collapsed by 16%.

The market capitalization of the whole niche has slipped to approximately $27.6 billion, representing a whopping 34% decrease on a 24-hour scale.