Zcash Sheds 14% In Last 7 Days, But Analysis Reveals Buying Opportunity
Zcash (ZEC) was treading a bearish route along with other altcoins, having shaved off as much as 14% in the past week.
- Zcash loses 14% last week but opens up an increased buying opportunity
- Awesome Oscillators looks bullish
- ZEC’s RSI at 42
On-chain metrics have shown a glimpse of a buying opportunity with a hint of a downtrend. Now, will the bulls pull it off and haul the price back to $66?
Zcash Fibonacci retracement levels have hovered up from $55 to $92.6, showing an 83.4% retracement level, which is close to the key support zone of $58. In June, the $55 to $58 zone emerged to be a bullish lane.
OBV Hints Increased Buying Volume
More so, the OBV is also seen to rise since July hinting at a more stable buying volume which is recognizably stronger compared to the selling pressure.
On the flip side, frequent retests of the support level seem to have weakened it. If the ZEC price dips below $58, then the coin could further slip to $55 and $52, triggering a new buying opportunity.
Still, the momentum is geared towards the sellers with the RSI unable to offshoot the 50 zones and stay above that level.
On a 2-hour chart, Zcash appears to have dampened its strength and has weakened as seen in the past couple of weeks. The $67.3 area was bearish as seen since August. More so, the same area has been retested twice.
At this point, the AO reveals a bullish divergence. So, as the price thrusts into the support zone, the momentum is perceived to switch.
ZEC’s price is currently heading above the consolidation period while enjoying the uptrend.
Zcash Price Spikes By 1.86%
According to CoinMarketCap, ZEC’s price has surged by 1.86% or trading at $58.25 as of press time. The total market capitalization slumped by 4.62%. More so, trading volume has dipped by 39. 53%, which shows that the buyers are trying to grow their ZEC holdings.
On the daily price chart, ZEC is seen to spike in price as it hovers near the upper trendline. In order to breach the support line, bulls must consolidate at ZEC.
On the other hand, bears can try to deter the coin’s uptick at any time with the constricted rate of accumulation.
If the bulls want to go in full force and avoid any deterrence from the bears, then they must accumulate.
Based on the daily chart, ZEC’s price is trying to maintain its momentum during the consolidation period. Technical indicators show the increased speed of ZEC’s upward trend.
ZEC’s RSI is currently 42 which is below neutral. The MACD seems to intersect with the signal lines which could signify changes in trends.
Crypto total market cap at $938 billion on the daily chart | Source: TradingView.com
Featured image from Tino Group, Chart: TradingView.com
(The analysis represents the author’s personal views and should not be construed as investment advice).