Zcash Price Risks 35% Drop as Head-and-Shoulders Pattern Forms

Zcash (ZEC) has outperformed most major cryptocurrencies, including Bitcoin (BTC), in recent weeks, but its daily chart is now showing signs of a potential bearish reversal.

ZEC May Dip Toward $360–$370 in June

ZEC is forming what appears to be a head-and-shoulders pattern, a classic technical setup that often appears near market tops. The structure includes three peaks: the left shoulder, the higher middle peak known as the head, and the right shoulder, which usually forms below the head.

In Zcash’s case, the pattern has developed after a sharp rally from its April lows, with price action now weakening near the right-shoulder area.

The key level to watch is the neckline near $500. This area connects the pullback lows between the shoulders and the head, making it the main support level for the pattern.

A decisive daily close below the neckline would activate the head-and-shoulders breakdown scenario. In that case, the measured downside target comes near the $360–$370 range, based on the distance between the head and the neckline.

That target also aligns closely with ZEC’s 200-day EMA (blue), a widely tracked long-term trend indicator. A move toward that zone would imply a drop of roughly 35% from current levels.

Momentum indicators are also cooling. ZEC’s daily relative strength index has slipped from its earlier overbought zone, suggesting buyers are losing control compared with the previous rally phase.

Therefore, $500 remains the line in the sand for Zcash. Holding it keeps the bullish trend intact. Losing it could expose ZEC to a deeper correction toward $360–$370 in June.

What If The Bearish Setup Gets Invalidated

Notably, the Zcash neckline near $500 also sits close to its 50-day exponential moving average, or 50-day EMA (red).

That makes the $500 zone a major technical support cluster. As long as ZEC holds above it, bulls can argue that the token is consolidating after a strong upside move rather than reversing lower.

A rebound from the $500 area could have ZEC test its 0.236 Fibonacci retracement line at around $568 as the next upside target. A further rally may bring the price toward the $680–$700 area.