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Zcash Price Analysis ZEC / USD: Critical Level

ZEC could turn bullish, if it manages to break above its resistance level.

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  • Zcash is trapped within a large falling price channel on the four-hour time frame
  • The daily time frame highlights substantial amounts of positive MACD divergence
  • A large inverted head and shoulders pattern is also present on the daily time frame

Zcash is starting to appear increasingly interesting from a technical perspective as the popular cryptocurrency trades at its weakest level since March 2019. Several technical indicators are suggesting that the ZEC / USD pair could soon stage a bullish reversal if buyers can hold price above the $44.00 level.

The ZEC / USD pair has suffered eight-straight weeks of losses and relinquished over fifty percent of its value since July this year. A bearish head and shoulders pattern has been rapidly unfolding, after sellers broke through the $75.00 level.

The overall size of the bearish head and shoulders pattern still suggests that Zcash could fall towards the $25.00 level. However, the decline has created sizeable amount of positive MACD divergence, which points to an eventual recover back towards the $80.00 level.

SIMETRI Research

Furthermore, a large inverted head and shoulders pattern still remains dangerous and valid on the daily time frame while price trades above the $15.00 level. Overall size of the huge inverted head and shoulders pattern would take the ZEC / USD pair back towards the $200.00 level over the long-term.

With the cryptocurrency market showing signs of stabilizing in September, it may be time to start to look to Zcash to mount a sustainable recovery, although traders still need to be mindful that the cryptocurrency could still fall back toward the $25.00 support level, before staging a recovery over the medium to long-term.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Zcash is extremely weak, at 19.00 %, while the overall long-term sentiment towards the cryptocurrency is neutral, at 58.00%.

 

ZEC H4 Chart September 4 by TradingView
ZEC / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame is showing that the ZEC / USD pair is trapped within a falling price channel. Bulls need to move price above the $50.00 level to break free from the price channel, with the $55.00 level the foremost resistance prior to the $67.00 level.

Bullish MACD price divergence extends back towards the $80.00 level, we should monitor this divergence potentially being eroded, if price breaks above the $50.00 level. A large reversal pattern could also form if price reaches the $80.00 level.

 

ZEC Daily Chart September 4 by TradingView
ZEC / USD Daily Chart by TradingView


Downside Potential

The downside potential for the ZEC / USD pair could open-up dramatically if the $45.00 level is broken over the coming sessions. The bearish head and shoulders pattern on the four-hour time frame still suggests that the ZEC / USD pair could drop towards the $25.00 level.

From a long-term perspective, the $15.00 level is key, as it is the head of a huge inverted head and shoulders, and an area of critical technical importance.


Summary

The short-term technicals Zcash will become apparent once a breakout from the $45.00 to $50.00 price range occurs.

Overall, a sustainable recovery towards the $80.00 level can take place if we start to see the ZEC / USD pair breaking above the $50.00 resistance level.

 

Check out our coin guide for Zcash for a quick overview of the project.

A deeper dive is available in our DARE analytical report.

 

Zcash Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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