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Zcash Breakout Still In Cards

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Zcash (ZEC)

Market Cap. $1.12B

Circulating Supply:3.79M ZEC

Max Supply: 0 ZEC

Volume (24h) $ 64.10M

 

The ZEC/USD dropped today and erased some of the yesterday’s gains. Price remains under pressure after the last false breakout and because is still trapped below some crucial resistance levels. The has found a temporary resistance, but we could see another breakout attempt soon.

Zcash rose by 4.17% today and by 10.80% in the last 7 days. We need a confirmation that the crypto will start a larger upside movement.

Zcash (ZEC) chart

The rate is trapped within a Falling Wedge pattern after the false breakout above the upside line of this pattern. ZEC/USD has also made a false breakout above the 23.6% retracement level and above the 50% Fibonacci line (ascending dotted line), so the minor decrease is natural.

It will drop towards the lower median line (lml) of the ascending pitchfork if the downtrend line will hold. A valid breakout above the upside line of the chart pattern will signal a further increase, but only a valid breakout above the 50% Fibonacci line will confirm a sharp increase in the upcoming weeks and months.

The ZEC/USD further increase could be invalidated only if the rate will drop and will stabilize outside the ascending pitchfork’s body.

Conclusion

We may have a buying opportunity after the breakout above the downtrend line and above the 23.6% retracement level, but only if the rate will stay above the lower median line (LML) of the ascending pitchfork. The next major upside target will be at the median line (ML) of the ascending pitchfork.

©Forex.Academy

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