Zcash (ZEC) is hovering near a critical technical support level of $290 after a severe decline, with the price down 1.7% in the past day to $289. The token has lost 21% over the last seven days and 43% over the past month, significantly underperforming a slight broader market rebound. Trading volume has softened, with a 15% drop to $423 million in the past 24 hours, while derivatives data shows futures volume down 20% to $1.14 billion, though open interest held steady at $451 million.
The recent weakness is attributed to profit-taking following a late-2025 rally and significant governance uncertainty. In January, the entire core development team at the Electric Coin Company (ECC), including CEO Josh Swihart, resigned following a dispute with the Bootstrap non-profit board over governance design, funding access, and control of key products like the Zashi wallet. While the Zcash network itself remains technically sound, sentiment has been damaged by uncertainty over future upgrades and development direction. Regulatory pressure on privacy tokens also continues to be a headwind.
Technically, ZEC is testing the lower Bollinger Band near $290, which often signals short-term exhaustion. The price remains below the 20-day moving average, maintaining a downward trend. The Relative Strength Index (RSI) is in the low-30s, a level that has preceded relief bounces in the past. Resistance is seen in the $320–$350 range. A break below $280 could trigger further declines.
Meanwhile, Bitcoin (BTC) is attempting a recovery, trading 5.5% above its recent nine-month low of $74,500, with traders eyeing a potential rebound toward $85,000. Analysts point to a massive "CME gap" between Friday's close near $84,445 and Monday's open around $77,400 as a key technical level to watch. Fair Value Gaps (FVGs) are identified between $79,000–$81,000 and $84,000–$88,000 as potential targets.
A crucial catalyst for the rebound thesis is the return of institutional demand. Spot Bitcoin ETFs recorded $561.9 million in net inflows on a recent Tuesday, ending a four-day outflow streak and marking February's first inflow day, which already outpaced all of January. Analysts interpret this as institutions "buying the fear." Market sentiment data from Santiment shows FUD (fear, uncertainty, and doubt) levels recently hit their highest since November 2025, historically a precursor to relief rallies. Liquidation heatmaps indicate strong sell-order clusters at $80,000 and above $85,000; a break above $80,000 could trigger a short squeeze, propelling prices toward the $85,000 liquidity zone.
