Zcash (ZEC) Technical Analysis: Galaxy Digital Listing Lifts ZEC out of Bear Market
Bitcoin has fallen a further 3.59% today as the market takes another dive. The global crypto market capital is now back down around December levels at $122 billion and a vast portion of altcoins are suffering heavy losses. One of the few coins to survive today’s crash, however, is Zcash. Earlier today, news broke out that Galaxy Digital, a virtual currency brokerage for institutional investors owned by billionaire crypto proponent Mike Novogratz, has added ZEC to its OTC trading services. This is big news for the project and ZEC traders, as the Galaxy Digital listing will provide increased liquidity and exposure for the asset.
Right now ZEC is up an impressive 7.60% against BTC and finally starting to break out of an eight-month long falling wedge, as traders respond bullishly to the news. Will this be the turn around point for Zcash, or will this turn out to be a temporary pump? Let’s take a look.
On the 1D ZEC/BTC, we can see that ZEC has been consolidating inside a long falling wedge pattern since May 2018. Over the last 24hrs, the asset reached maximum consolidation between the downtrending resistance and the uptrending support, and was able to break out bullish.
On the 1D indicators, there are a number of promising signs that suggest that bullish momentum is still building behind the asset after this morning’s initial spike in activity.
This looks hopeful for a continuation, provided trading volume can sustain through the current bear market.
-The 12MA on the MACD indicator is starting to move up and away from the 26MA, with buying candles appearing on the histogram.
-The indicator line on the RSI has spiked from 39% to 50% and is showing no sign of correcting at the time of writing.
-On the CMF, the indicator line is close to breaking above the zero line which is a fairly strong bullish signal.
In order to fully confirm a continuation, however, we still need to see these signs:
-Parabolic SAR dots appear beneath the price action on the 1D chart.
-A bullish convergence between the Aroon Up and Aroon Down lines.
-Candles closing above the 50 SMA.
-A breakout above the resisting Kumo cloud on the Ichimoku indicator.
Without these additional confirmations, Zcash could start to correct back down and maybe push sideways as bullish momentum departs from the asset. Bitcoin’s performance could also start to have an effect on Zcash’s price if it continues to break bearish. Buyers could start to lose faith in the market and move profits over to stablecoins to secure their gains.
Zcash (ZEC) Price Targets
All ROIs and losses are calculated from the asset’s current value at 15,675 Sats.
R1: 16,643 Sats (6.18% ROI)
R2: 17,549 Sats (11.96% ROI)
S1: 14,863 Sats (-5.18% Loss)
S2: 0.0 Fibonacci Level / 14,265 Sats (-9.00% Loss)