The cryptocurrency market has experienced a significant rebound in the past week; however, Zcash (ZEC) has not participated in this bullish trend and has instead faced a downturn of approximately 27%. Analysts are now suggesting that it may be heading towards an even steeper decline.

Is the Bull Run Over?

Currently, ZEC is trading around $470, down from a local high of over $730 achieved earlier this month. Once a leader in gains throughout October and November, Zcash appears to be losing momentum as bearish sentiment creeps back into the market.

ZEC Price

Source: CoinGecko

Analysts are noting a troubling trend in ZEC’s price charts. The X user Tryrex claims the asset has formed a triple top, indicating weakness and forecasts it could fall to around $350 soon. Meanwhile, Altcoin Sherpa predicts it may dip below $200 in the coming weeks, although some rebounds might occur along the way.

Max Keiser, well-known for his strong Bitcoin advocacy, has expressed that the ZEC “pump and dump” phase has concluded and warned that a drop to $55 seems unavoidable. He summarized his stance with the statement:

“Bitcoin Only. Everything else is just gambling.”

The Bulls Haven’t Capitulated Yet

Despite the lackluster price action, some analysts remain hopeful for ZEC’s future. Altcoin Miyagi has speculated that ZEC could possibly reach a remarkable $1,000, echoing sentiments previously suggested by Arthur Hayes.

The negative sentiments surrounding ZEC are partially countered by Grayscale’s plans to convert its Zcash Trust into an ETF, a move expected to increase interest from investors.

Currently, ZEC’s Relative Strength Index (RSI) sits near 30, getting close to the overbought territory, hinting at a potential price recovery. This technical analysis tool gauges the speed and magnitude of recent price movements, helping traders predict future trends.

ZEC RSI

Overall, while the current market conditions appear challenging for Zcash, potential price recoveries could occur, keeping investors on alert.