Recently, the performance of ZEC has left many investors confused. On one hand, there are continuous favourable information such as institutional adoption, compliance progress, and ETF applications; on the other hand, the price continues to experience downward movement, and there are even occasional signs of a crash. What is the cause of this divergence?

According to the data, the current price of ZEC is 463.34 USDT, with a decline of over 12% in the last 24 hours. Key moving averages such as MA7, MA25, and MA99 are all in a bearish arrangement, and the MACD indicator continues to run below the zero axis, showing clear bearish signals. Although trading volume has increased, the price has not managed to form an effective rebound, and every rally seems to have become an opportunity to sell.

Favourable Information keeps coming out, why is the market not responding?

It is undeniable that ZEC has indeed made a lot of positive progress recently. For example, Nasdaq-listed Reliance Global Group has converted its entire cryptocurrency investment portfolio to ZEC, demonstrating recognition of Zcash's privacy technology and Compliance. In addition, Grayscale has also submitted an S-3 form to the SEC, planning to convert the Zcash trust into a spot ETF, paving the way for future institutional capital inflows.

These messages have not managed to reverse ZEC's downward movement. The market seems indifferent to these "forward Favourable Information" and is instead more focused on the current weakening of technical indicators and the overall low market sentiment.

The technical aspect is bearish, while the sentiment shows divergence.

From the chart, ZEC is currently under the pressure of multiple moving averages, and the MACD continues to show weakness, with a lack of momentum for a short-term rebound. Although some indicators indicate overselling, every rebound faces selling pressure, indicating a lack of market confidence and unwillingness for funds to continue going long at this position.

The community sentiment has also clearly diverged: one group is optimistic about the long-term value brought by institutional consolidation, while another group feels anxious about the short-term price decline. This divergence itself has also intensified market fluctuations and uncertainty.

Is it an opportunity or a trap?

For those still expecting ZEC to return to the $1000 high, the reality may be somewhat harsh. The market never rises solely because of "Favourable Information"; the flow of funds, technical patterns, and the overall market environment are all factors that cannot be ignored.

From the current trend, ZEC is still in a downward movement, and each rebound may be an opportunity to reduce positions rather than a reason to chase the rise. Those "big cakes drawn out" often look good but are hard to swallow. $ZEC ‌#现货ETF获批新进展