Zcash Faces Critical Test as Bearish Signals Raise $216 Breakdown Risk
- Zcash is currently trading at $439.85, with a trading volume of $1.31 billion.
- The key support level is set at 305-372; a break could target 216.
- The weekly chart’s MACD indicates a bearish crossover, while historical trends point to possible long-term bottom areas around $32.
Zcash (ZEC) is trading at $443.23, with $1.31 billion in 24-hour trading volume. The privacy-focused cryptocurrency holds a $7.24 billion market capitalization and a 0.24% market share, despite posting a modest decline over the past day as prices cool from recent highs.
Price Below Support May Test $216
The pullback comes after a strong rally that pushed ZEC to an all-time high of about $761. Crypto analysts indicate that it was normal for the market to experience a decline, considering it came after a sudden rally. Market performance indicated that there was a strong reaction at the $305 support zone, and subsequently, ZEC recovered and sustained above $372.
Technical analysis indicates that ZEC is still quite strong as long as it is trading within the $305-$372 range. Trading within this region may pave the way for another bullish attempt and maybe a new bullish phase. But if the price breaks down below the support region, the major level for a breakdown could be $216.
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Upcoming Weeks Crucial For ZEC Trend
Zcash has remained one of the last major assets to move during the ongoing bull market, rising from mid-September through mid-November, while most altcoins have already peaked. This move saw Zcash break its previous high in the ongoing cycle, but recent market signs appear to be indicating a turning point.
On the weekly chart, a bearish crossover in the MACD indicator suggests that the momentum of ZEC may be losing and that an impending decline may follow. In terms of ZEC’s long-term chart, the coin remains in a descending channel, from which it began during early 2017. The current high forms a lower high, meaning that a new downfall may begin.
Historical analysis reveals that Zcash’s previous bear market tendencies culminated at around the 1.05 Fibonacci level, with declines of approximately 96% to 98% from peak positions. Notably, in keeping with this precedent, a possible long-term target for a fall has been identified around $32, while a fall to $13 has been deemed possible but highly aggressive.
As for long-term positioning, it has been observed by charters that the strongest indicator for an impending accumulation phase is a monthly MACD basic signal, independent of the specific price value. In addition, methods like the sine wave indicator have remarkably followed through on its peaks and troughs, and a weekly golden cross has regularly occurred shortly before its main cycle peaks.
Now that Zcash has finished its rapid ascent, the next few weeks may be telling in terms of whether the asset can gain momentum or if a correction ensues.
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