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- ZEC rejected 50 day ema and forming lower lows bearish pattern formation
- ZCASH breakdown short term rising trendline
Zcash (ZEC) had been trading with mild bullish cues and likely to face resistance at the previous day high at $41.8. As per coinglass, In the last 12 hours, derivative data suggest 62% long buildup and 37.76% short buildup which denotes buyers are more confident as compared to sellers. Currently, ZEC/USDT is trading at $39.6 with the intraday gains of 0.51% and volume to market ratio stood at 0.0732
Will ZEC break its yearly low at $33 ?
On a day time frame, ZEC had been very stable as compared to its peers and had tried multiple times to trade above its 50 day ema (pink) but due to aggressive selling, bulls were unable to sustain higher levels. In the past couple of months ZEC has been trading in the wide range between $48 to $82 with a mild bearish bias but due to FTX collapse, the bear succeeded to take control over the lower range and dragged the prices down towards $33.2 level. Later, after a little bit of consolidation bulls were attempting to trade higher while forming higher high swings.
The 200 day ema (green) sloping down indicates a trend to remain weak on a positional basis whereas The 50 day ema (pink) at $44 will act as an immediate hurdle for bulls followed by the next barrier at $50. The MACD had generated a sell signal indicating price may remain weak in coming days whereas The RSI at 37 may enter the oversold zone.
Will the ZEC bounce back from the support zone ?
On a lower time frame, ZEC had been slowly and steadily rising while respecting the rising trend line but recently sellers had succeeded to drag the price down below the trendline which triggers more selling in ZEC forming lower low swings. The supertrend indicator has generated a sell signal which denotes short term trend may remain in bear grip whereas if bulls succeed to trade above $48 we may see some upside short term trend reversal. On a lower side $37 will act as a savior for bulls in coming days and if price slips below $37 we may see further downside towards $33 and below levels.
Summary
ZEC had been disappointed the investors in the past couple of months and likely to remain in bear grip for some more time. The technical indicators also do not show any signs of trend reversal which indicates sellers may continue their dominance in coming days.
Technical levels
Resistance levels : $48.00 and $56.00
Support levels : $37.00 and $33.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
