Key Takeaways

Why did Zcash (ZEC) drop 10% after its rally?

ZEC’s 10% pullback follows a dramatic surge in trading volume, from $500M to $4B, as overbought indicators (Stochastic RSI) signal potential for a deeper correction.

What’s driving ZEC’s increased volatility?

ZEC’s limited circulating supply (30%) exacerbates price swings during periods of high trading activity — Futures suggests that long positions could support prices.

Zcash [ZEC] is cooling off after last week’s explosive rally. The privacy-focused cryptocurrency dropped 10% in the past 24 hours as traders began to reassess the recent surge.

This pullback comes as technical indicators flash signs of exhaustion.

The Stochastic RSI is lingered in overbought territory at press time, suggesting that the market may be due for a deeper correction to fill the market imbalance at around $120.

Trading volume skyrockets amid price pullback

The sell-off follows a dramatic spike in trading activity across ZEC markets. According to Messari, trading volume soared from roughly $500 million to over $4 billion in just one day.

This surge highlights an intense burst of both speculative buying and profit-taking. 

The jump in turnover has coincided with heightened volatility.  In the past sessions, such shifts often precede sharp price swings in either direction. For ZEC, the long-term bias is bullish.