Zcash Price Falls 4% Despite Cypherpunks Accumulating ZEC

According to CoinMarketCap, the $ZEC price is currently trading at around $342.29, with a drop of around 4.52%. At present, the privacy coin is holding a market capitalization of around $5.69 billion. A similar drop was also witnessed in the $ZEC price, where it plunged to $454.68 million.

Zcash ($ZEC) Price Faces Slight Drop Amid Consolidation Pattern

In the last 7 days, the $ZEC has soared by around 6.81%. Today’s drop is a sign that the cryptocurrency is facing a small correction before further upward momentum.

Zcash is creating pressure as the breakout zone comes closer. The token is consolidating after a sharp recovery, and the current price is holding above major support while gradually heading towards resistance levels.

The current price chart is forming higher lows. This is one of the biggest signs of accumulation from buyers. If the price manages to for a clean breakout with high trading volume, it could expand quickly into a strong upward momentum. At present, there are major target points at $350, $380, and $420.

The price movement is a result of the recent consolidation phase, where the cryptocurrency has repeatedly traded between the tight range of $345 and $362. The consolidation pattern is currently forming a consolidation pattern on the daily chart after breaking out from a multi-month downtrend.

The current price movement is like a flag formation where the token is taking a break from recent highs around the $360 to identify the next direction. This kind of price movement comes after a rally in the cryptocurrency. This might help it to go for another high if trading volume stays high.

The current price action is looking constructive as long as the price holds above the recent low of $340.

According to TradingView, the 14-day relative strength index is currently sitting at around 38 on the daily timeframe. This means the cryptocurrency is currently in neutral territory without being oversold and overbought. This indicator is saying that the cryptocurrency might follow any direction without any immediate reversal pattern.

The RSI has cooled from highs seen during the early April rally, which confirms the current consolidation zone.

Moving averages are giving mixed signals for the short-term chart. The current price is trading below the 5-day and 10-day simple moving averages around $355. This is working as a short-term resistance.

However, Zcash is currently above the 50-day and 200-day moving averages, which are between $310 and $340.

As of now, there is a major support level at around $340, and if the cryptocurrency falls below this level, it might see a drop toward $330. On the other hand, there is a major resistance level at around $360 to $370.

The current drop in Zcash comes when the crypto market is witnessing a fresh excitement after Bitcoin ($BTC) soared above $74,000. Following this rally in $BTC, many altcoins have witnessed a small jump in the last 7 days.

On April 15, Cypherpunk Technologies announced that it bought an additional 9,163.32 Zcash tokens for about $2.15 million. According to the official press release, the company has purchased each token at the average price of around $234.63 per token. With this latest acquisition, the total Zcash holdings of Cypherpunk Technologies have reached 303,906.40 $ZEC. This is around 1.82% of the entire $ZEC circulating supply.