ZEC prices fall below the support trendline approaching the crucial support level of $50. Will this downtrend result in a drop below $50?

The 27% drop in ZEC prices over the last three weeks results in a drop below the support trendline with an increase in the selling pressure. The downtrend cracks below all the crucial SMAs and continues to approach the bottom support of $50. But, will buyers cushion the falling prices at $50?

<strong>Key Points: </strong>
<ul>
 	<li>The ZEC prices trade close to the $60 mark.</li>
 	<li>The RSI slope trends lower below the halfway line reflecting increased supply pressure.</li>
 	<li>With a market cap of $894 Million, the intraday trading volume of ZCash has decreased by 8.53% to reach $65 Million.</li>
</ul>
<img class="alignnone" src="https://s3.tradingview.com/snapshots/e/Eg7oXt5D.png" alt="ZEC/USD Price Chart" width="2047" height="1006" />

<span style="font-weight: 400">Source- </span><a href="https://www.tradingview.com/x/Eg7oXt5D/"><span style="font-weight: 400">TradingView</span></a>
<h2>ZEC Technical Analysis</h2>
The ZEC price displays a bear cycle within the expansion channel breaking below the support trendline after facing opposition from the 100-day SMA. The downtrend breaks below the 50 DSMN and approaches the $60 mark with an increase in selling pressure evident by the volume indicator.

The increased selling pressure increases the possibility of falling prices approaching the psychological mark of $50. Moreover, it endangers the bullish dominance at this crucial level, threatening a downtrend continuation.

However, the low price rejection in the previous daily candle projects a possibility of sideways continuation before continuing the prevailing trend.

A bearish continuation below the psychological mark of $50 will test the next support level at $40.

Conversely, a bullish reversal crossing above the $69 horizontal level will challenge the sellers at the $80 mark.
<h2>Technical Indicators</h2>
The RSI slope continues to trend lower within the nearly oversold zone under the influence of the 14-day SMA. Hence, the technical indicator displays growth in the underlying bearishness.

The MACD indicator displays a declining trend in the fast and slow lines crossing below the zero line with an increase in bearish histograms.

Hence, the technical indicators maintain an optimistic outlook for the upcoming trend in ZEC prices.

Resistance Levels: $69 and $81

Support Levels: $50 and $40

ZEC Technical Analysis: Will Buyers Hold The Fort At $50?

ZEC prices fall below the support trendline approaching the crucial support level of $50. Will this downtrend result in a drop below $50?

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

ZEC Technical Analysis: Will Buyers Hold The Fort At $50?

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