As the whole crypto market bled, Zcash (ZEC) started December with a massive one-day pullback, leading the losses among top cryptocurrencies. While some market observers suggest that the altcoin is positioned for a major move, others have warned that the price risks another major correction in the coming weeks.<\/p>\n
Following the late Sunday market correction<\/a>, Zcash has lost crucial levels and fallen to one-month lows. Over the past three months, the cryptocurrency has seen a parabolic rally, surging over 1,775% to its all-time high (ATH) of $750 in early November.<\/p>\n Since its ATH rally, the altcoin has been trading within the $440-$720 levels, bouncing between the range\u2019s upper and lower boundaries amid the recent market volatility. However, the end-of-November pullback saw ZEC\u2019s price unsuccessfully retest its key support area, closing the day below this area for the first time in nearly a month.<\/p>\n After losing this zone, Zcash continued to drop below other key support<\/a> levels, breaking down the $400 barrier and hitting a local low of $328 on Monday morning before bouncing to the $340 area.<\/p>\n Amid this performance, some market observers warned that the altcoin could be in trouble and further bleeding may occur in the coming weeks. Sjuul from AltCryptoGems highlighted<\/a> that ZEC registers the biggest price drops in the weekly and daily timeframes, with declines of 40.2% and 24%, respectively.<\/p>\n The analyst previously pointed out that the cryptocurrency lost its uptrend after falling below the EMA200, recording \u201ca perfect bearish retest followed by a strong rejection\u201d last week. As a result, Sjuul suggested that if Zcash did not reclaim the key moving average, the cryptocurrency would be positioned for a breakdown to lower support levels.<\/p>\n Similarly, Altcoin Sherpa considers<\/a> that ZEC could drop another 30%-40% to the $200 area after losing the crucial $440 support. Nonetheless, he added that the price will likely see short-term bounces during its retracement.<\/p>\n Mert Mumtaz, Helius co-founder and CEO, affirmed<\/a> that a correction after a 700% rally \u201cis normal,\u201d adding that the privacy token \u201clooks great\u201d on higher timeframes. Notably, the cryptocurrency still shows 700% and 485% increases on the three-month and one-year timeframes.<\/p>\n The CEO also highlighted Zcash\u2019s strengths<\/a>: \u201cprivacy is not a narrative, private money is the entire purpose of crypto,\u201d suggesting that the altcoin is positioned to challenge other leading cryptocurrencies like XRP in the future.<\/p>\nZEC\u2019s Correction: Nothing To Worry About?<\/h2>\n