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Zcash / USD Technical Analysis: Breaking Out Is Not Enough

Despite a recent breakout from a price channel, bullish momentum is extremely weak.

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  • Zcash is bearish in the short-term with a large bearish pattern present on the four-hour time frame
  • ZEC / USD is bearish over the medium-term with the cryptocurrency trading below its 200-day moving average
  • The daily time frame shows a breakout above a descending price channel that is starting to lose momentum

Zcash / USD Short-term price analysis

 

In the short-term, Zcash is bearish, with the ZEC / USD pair trading under its 200-period moving average on the four-hour time frame.

A large head and shoulders pattern is also present on the four-hour time frame, with cryptocurrency edging closer to the neckline of the bearish pattern.

The ZEC / USD pair is also creating bearish lower highs and lower lows across the four-hour time horizon.

 

 

ZEC / USD H4 Chart                                         (Source: TradingView)

 

 

Pattern Watch

Traders should note that if the bearish head and shoulders pattern is triggered, the four-hour time frame shows that an even larger head and shoulders pattern could take shape.

 

MACD

The MACD indicator on the four-hour time frame is showing that pressure remains to the downside.

 

Relative Strength Index

The RSI indicator on the four-hour time frame is currently neutral and providing no clear trading signal.


Zcash / USD Medium-term price analysis

 

In the medium-term, Zcash remains technically bearish with price trading well below the pair’s 200-day moving average on the daily time frame.

The daily time frame is also showing that the ZEC / USD pair has performed a major upside technical breakout, with price trading above a large descending price channel for the first time since the summer of 2018.

Bullish momentum remains weak despite the major technical breakout, with the cryptocurrency trapped in sideways trading action just above the price channel.

 

 

ZEC / USD Daily Chart                                     (Source: TradingView)

 

 

Pattern Watch

Traders should closely monitor daily price closes above the upper trendline of the descending price channel.

 

MACD

The MACD indicator on the daily time frame is flatlined and currently generating no clear trading signal.

 

Relative Strength Index

The RSI indicator is neutral on the daily time frame and suggests that recent bullish breakout is losing upside momentum.


Conclusion

 

Zcash is likely to remain under pressure in the short-term, especially with the presence of the bearish head and shoulders pattern looming over the cryptocurrency.

The daily time frame is providing a contrasting picture from the four-hour time frame, with the major technical breakout above the descending price channel going up against a bearish head and shoulders. Ultimately, traders must not ignore either pattern and should continue to monitor price action around the pattern’s breakout zones.

 

  • zcash
  • Zcash
    (ZEC)
  • Price
    $59.19
  • Market Cap
    $363,053,757.21

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