Dull knives cut flesh, and that's exactly the current market situation.

Why is it falling? On the surface, it's due to selling pressure. Over the past 24 hours, there has been a clear net outflow of funds, and market sentiment is bearish. But the deeper reason might lie upstream—the mining machine vendors. The current support for ZEC largely depends on miners defending the price; they only have the motivation to hold the line when they sell their machines. But now, most machines have been sold, and the inventory that needed to be cleared out is almost gone. Who will spend money to push the price up now?

If no one is pushing, then it’s only free fall.

Interestingly, the fundamentals of Zcash are not actually bad. Privacy features are still being developed, shielded pool usage is near historical highs, and quantum-resistant zkSNARKs technology is being repeatedly discussed. Even institutions like Foundry are starting to get involved in ZEC mining. But these are long-term stories and have little to do with short-term price movements. No matter how advanced the technology is, if the market doesn’t buy it, the price will still fall.

The current situation is: the story is still being told, but no one is willing to buy at high levels. Institutional interest is real, but their entry costs are surprisingly low. Who will buy the high-priced chips held by retail investors? Who will unload them?

So the strategy is simple—sell on rebounds.

Don’t expect a V-shaped reversal, and don’t believe those calls claiming “institutions are about to push the price up.” Candlestick charts don’t lie; moving averages are holding down the price, and volume is shrinking. This kind of structure usually indicates further downside. Every rebound to a resistance level is an opportunity to reduce holdings.

ZEC will eventually fall to where it should be. Where is that? No one can predict precisely, but it definitely isn’t at this level supported by miners’ defense.

These words may sound harsh, but the cruel truth is that the market doesn’t care about anyone’s cost basis. Recognize the trend, cut losses in time—it's better than being trapped at the halfway point.

Dull knives are still cutting; will you hold on stubbornly, or take the opportunity to exit on a rebound? #加密市场回调 $ZEC