Market Overview: Zcash/Tether Faces Testing of Key Support Levels

Summary
• Price broke key support near $505.00, forming bearish engulfing patterns.
• Momentum weakened as RSI approached oversold levels with no immediate reversal signs.
• Volatility spiked in early session but has since compressed, with volume diverging from price.

Zcash/Tether (ZECUSDT) opened at $511.69 on 2026-01-06 12:00 ET, peaked at $511.70, fell to $477.60, and closed at $481.62 by 12:00 ET on 2026-01-07. Total volume was 95,842.56 ZEC, with notional turnover of $45,698,479.63.

Structure & Trends

Price has tested and fallen below key support at $505.00, with bearish engulfing patterns forming between 17:00–18:00 ET on 2026-01-06. A potential short-term base appears to be forming near $482.00–$486.00, but no strong bullish confirmation has emerged.

Momentum and Volatility

The RSI has dipped into oversold territory (30) near $480.00, suggesting potential for a bounce—but without a strong bullish reversal candle or volume confirmation, this remains speculative. Volatility compressed in the latter half of the 24-hour period, suggesting a possible consolidation phase.

Volume and Turnover

Despite a sharp price drop, volume and turnover have declined, signaling weak follow-through from sellers. A divergence between price and volume may hint at short-term exhaustion, though the trend could resume lower if buyers remain absent.

Key Levels and Projections

Support now rests at $477.00–$479.00, with a 61.8% Fibonacci retracement from the $477.60 to $490.51 swing at $484.50 acting as a short-term pivot. A close above $491.00 may re-ignite bullish momentum, but near-term bias remains bearish.

Looking ahead, a test of the $478.00 level is likely, with the risk of further downside if buyers fail to step in. Investors should watch for a break below $477.00 to confirm a deeper pullback.