Key takeaways:
Zcash (ZEC) has soared over 520% up to now month, even defying the broader crypto sell-off that worn out $20 billion in leveraged positions over the weekend.
The privateness coin’s surge introduced it inside putting distance of the $300 stage, a worth not seen since December 2021, positioning ZEC among the many market’s standout performers.
Can ZEC’s worth rise any farther from its present ranges, or is a cooldown overdue?
ZEC technicals trace at one other 25% rally
Zcash’s explosive uptrend seems to be consolidating inside a basic bull flag sample, a continuation setup that usually precedes one other leg larger.
The most recent candle on the four-hour chart has fashioned a headstone Doji close to the higher trendline resistance, suggesting a doable short-term pullback towards the flag’s decrease boundary round $237.
ZEC might verify a bullish breakout if patrons push the worth above the flag’s higher trendline. Such a transfer would set up a technical worth goal for October close to $336, about 25% larger than present ranges.
The setup additional aligns with wholesome consolidation above the 20-period (inexperienced) and 50-period (pink) exponential shifting averages (EMA), indicating that the broader bullish momentum stays intact regardless of indicators of short-term overheating.
Bearish situation contains $210 ZEC worth
The ZEC worth plunging between the helps, i.e., the flag’s decrease trendline and the 20-period EMA, will increase the percentages of a decline towards the 50-period EMA at round $210.75 in October.
About $5.36 million in cumulative lengthy liquidations stacked close to the $244 stage makes it a key danger zone for the bulls, because the CoinGlass chart beneath exhibits.
ZEC’s decline beneath the $244 threshold dangers triggering a cascade of pressured lengthy liquidations, deepening the pullback earlier than any potential rebound.
In easy phrases, that’s the place many merchants’ stop-losses, or liquidation factors, are ready to be triggered, which can ship ZEC costs towards the $210.75 goal highlighted above.
ZEC hits file “overbought” ranges
The bearish case additionally leans on Zcash reaching its most overbought ranges on the weekly chart, which can result in a short-term pullback within the weeks forward.
As of Monday, ZEC’s weekly relative power index (RSI) stood above 92, its highest stage on file.
The earlier peak RSI was 78 in April 2021, and ZEC’s worth fell by almost 70% over the following few months.
An analogous cooling-off part might observe, notably if the worth fails to determine agency assist close to the 0.786 Fib retracement stage at $245.
Alternatively, a bounce from $245 assist might ship the worth rallying towards $307, or larger, to retest ZEC’s 2021 excessive at round $375.
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Analyst Altcoin Sherpa stated that any declines towards $200 could also be a “purchase,” suggesting that these decrease ranges might type the underside over the following few days.
“I’ll have an interest round $230 or decrease if it comes,” he added.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.
