Altcoins

Zcash revisiting this demand zone could signal buying opportunity

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

Earlier in July, Bitcoin had a hopeful look about it on the charts. The bulls had watched BTC publish increased lows at $18.8k and $19.2k two weeks into July.

To the upside, the king of crypto pushed previous the $21.7k resistance to succeed in $24k. However, this bullish impulse of the previous week was swiftly halted.

Over the weekend, Bitcoin started to bleed decrease, and the remainder of the altcoin market adopted in its footsteps. Zcash shortly descended from $65 to $56. In doing so, it flipped the $60 stage to resistance and gave the bears an enormous increase. Could ZEC drop beneath its vary as nicely?

ZEC- 12-Hour Chart

Zcash reaches a demand zone but the bullish prospects were rather weak amidst heavy selling pressure

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Source: ZEC/USDT on TradingView

ZEC fashioned a variety between $69.7 and $51.9 in late June when the excessive and the low had been examined shortly. In doing so, a zone of demand was established at $52, highlighted in cyan. Before the formation of the vary, Zcash had been in a powerful downtrend.

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In late May, the $76-$82 space was seen as a help zone, however ZEC crashed proper previous it within the promoting wave in mid-June. Going again to April, this was one thing that ZEC had usually completed.

It noticed sturdy shorter timeframe rallies, every of whom was rejected at a earlier decrease excessive on the downtrend.

The 12-hour RSI was beneath the impartial 50 line to point a downtrend in progress. In phrases of worth motion, the $69.7 stage was the downtrend’s vital decrease excessive to beat to flip the longer-term market construction.

ZEC- 4-Hour Chart

Zcash reaches a demand zone but the bullish prospects were rather weak amidst heavy selling pressure

Source: ZEC/USDT on TradingView

In July, ZEC appeared to supply an excellent shopping for alternative simply above the $50 space. After a powerful downward transfer, $52.9 was a longer-term horizontal help stage that supplied a low-risk shopping for alternative.

Inside the vary, the mid-range ($60.8) stage was a big stage, flanked by $65.2 and $56.3 ranges that are additionally necessary resistance ranges. They signify the 25% and 75% mark of the vary.

The 4-hour and decrease timeframes had a strongly bearish look to them. The transfer beneath $60, and its subsequent retest as resistance, was a improvement that outlined bearish power.

Zcash reaches a demand zone but the bullish prospects were rather weak amidst heavy selling pressure

Source: ZEC/USDT on TradingView

The 4-hour RSI additionally fell beneath impartial 50 in latest days and was at 31.4 to indicate vendor dominance. The Awesome Oscillator additionally registered purple bars on its histogram beneath the zero line, to indicate acute downward momentum.

The A/D line sat atop a help stage from late June when ZEC noticed a bounce from the $52 zone. This feat won’t be repeated. Caution was advisable, because the CMF additionally highlighted vital capital stream out of the market.

Conclusion

A revisit of the $52 demand zone seemed to be an excellent shopping for alternative. Yet, Bitcoin was weak on the charts, and a transfer again beneath $20k for BTC can’t be discounted.

In gentle of such bearish expectations, it appeared safer to attend or promote Zcash moderately than purchase a requirement zone that has been examined thrice throughout the previous month. Lower timeframe merchants can look ahead to a retest of the $60 or the $56 ranges to enter quick positions.

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