Zcash / USD Technical Analysis: Finding New Support
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- Zcash is bullish in the short-term, with the cryptocurrency still trading above its 200-period moving average on the four-hour time frame
- A large bullish inverted head and shoulders pattern has now formed on the four-hour time frame
- The daily time frame shows price consolidating outside of a descending price channel
Zcash / USD Short-term price analysis
In the short-term, Zсash is bullish, with the ZEC / USD pair still trading above its 200-period moving average on the four-hour time frame.
A large inverted head and shoulders pattern is now present on the four-hour time frame, with the cryptocurrency edging closer to the neckline of a small inverted head and shoulder pattern that has already played out.
Technical indicators across the four-hour time have turned bearish and are consistent with the recent pullback.
ZEC / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should carefully monitor neckline support from the smaller inverted head and shoulders pattern as it is now converging with the 200-period moving average on the four-hour time frame.
MACD Indicator
The MACD indicator on the four-hour time frame is bearish, with the MACD signal line crossing lower.
Relative Strength Index
The RSI indicator on the four-hour time frame is currently bearish and shows downside pressures are building.
Fundamental Analysis
The short term price spike was supported by the news that Bitmain has released a new Antminer Z11, which will provide three times more hashing power than its previous version. In addition to that, Binance announced that it will add additional trading pairs for ZEC, which could increase liquidity for the coin.
Zcash / USD Medium-term price analysis
In the medium-term Zcash remains bearish, with price trading below the ZEC / USD pair’s 200-day moving average on the daily time frame.
The daily time frame is showing that the ZEC / USD pair is still trapped in sideways trading action, after breaking away from a descending price channel.
Technical indicators on the daily time frame remain bullish, although downside pressures are building on the RSI indicator.
ZEC / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that a small head and shoulders pattern is starting to take shape on the daily time frame.
MACD Indicator
The MACD indicator on the daily time frame is bullish, although the MACD histogram is turning lower.
Relative Strength Index
The RSI indicator is showing that bearish momentum is starting to build on the daily time frame.
Fundamental Analysis
Zcash still faces challenges with adoption and demonstrates a low number of shielded transactions. Nevertheless, the project occupies the second place in the privacy coin sector and will likely move in the same direction as the cryptocurrency market in the medium-term future.
Conclusion
Zcash is under slight downside pressure in the short-term with bears probing towards the ZEC / USD pair’s 200-period moving average.
The presence of bullish patterns across both time frames and the sustained channel breakout on the daily time frame suggest that Zcash could continue to advance higher if key technical support holds firm.
An introductory course on the project is available in our coin guide for Zcash here.
For a heavier read, check out our full analysis on Zcash in the latest DARE report.
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