- Zcash and DASH erased major gains after losing critical support levels.
- Momentum indicators confirm deep bearish pressure with no reversal signs.
- Privacy coins face extra downside as liquidity shifts toward large caps.
The crypto market took another hard hit this morning, and privacy coins felt it the worst. Zcash and DASH — both of which looked incredibly strong through October and early November — have now wiped out almost all of their gains in a nasty reversal. The sudden crash has traders wondering what exactly triggered this drop, and more importantly, whether the sell-off keeps rolling into December. The charts, honestly, don’t paint a comforting picture.
Zcash Falls Out of Its Channel and Accelerates Downward
Zcash has been in freefall ever since hitting its all-time high of $750 on Nov. 7. After forming a lower high, the price slipped straight back into a downtrend and then completely broke down from its parallel channel. On Nov. 21, ZEC confirmed the bearish shift by losing a multi-month support level — a line it held for ages. Since then, the drop has been almost uninterrupted, barely pausing for a single bounce. The only small positive sign here is the $285 support zone, which sits roughly 22% lower from current levels. If ZEC is going to stabilize anywhere soon, that’s the spot.
Momentum indicators explain why the crash has been so sharp. Both the RSI and MACD flashed bearish divergences before the breakdown, signaling exhaustion. Now the RSI sits below 50 and the MACD is buried in negative territory. This combination made the sell-off fast and decisive, leaving almost no room for recovery attempts. The charts strongly suggest ZEC keeps falling until it reaches that $285 floor.
DASH Drops Even Harder as Support Levels Collapse
If Zcash’s decline looks ugly, DASH’s chart is even worse. The coin has plunged nearly 70% from its highs. A diagonal resistance trend line has been pressing down on DASH for weeks, and when the price got rejected again on Nov. 27, the collapse sped up dramatically. Breaking below the $55 support level confirmed what traders feared — the trend is decisively bearish now.
To make matters worse, the RSI and MACD both slipped into negative territory, verifying that momentum is firmly against DASH. The next real support sits at $30, meaning the coin could fall another 35% before finding any kind of meaningful floor. It’s one of those setups where buyers are simply nowhere to be found.
Why Privacy Coins Are Crashing Harder Than the Market
Even though the entire crypto market is struggling, privacy coins seem to be taking an outsized beating. A lot of it comes down to liquidity drying up across smaller-cap assets while ETF flows continue funneling money primarily into large-cap tokens. That leaves privacy coins like ZEC and DASH exposed when sentiment turns. Both showed huge rallies earlier in the quarter, but now the charts are showing clean breakdowns — the kind that usually lead to multi-week declines.
If Zcash loses $285, and DASH breaks under $30, the next legs down could get messy fast. For now, the charts show no reversal signs at all, which makes the answer pretty straightforward: strong downtrend, weak momentum, and buyers nowhere in sight. Here is where patience might be the only thing left for traders waiting on a turnaround.
