Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
The Tether Dominance metric has been on an uptrend over the previous few days. This got here within the wake of sturdy promoting throughout the crypto market, and contributors fled to stablecoins.
Zcash moved in tandem with many different altcoins because it shed 13.15% in underneath 5 days. But, the technical evaluation confirmed {that a} shopping for alternative with a transparent draw back invalidation was across the nook. Can the bulls achieve driving costs again to the $66 mark?
ZEC- 12-Hour Chart
Supply: ZEC/USDT on TradingView
The Fibonacci retracement ranges (yellow) had been plotted based mostly on ZEC’s transfer up from $50 to $82.8. The device confirmed the 78.6% retracement stage of this transfer to be at $57, which was fairly near the $58 horizontal help stage. Furthermore, each of those ranges have been revered in latest weeks as sturdy help.
In late June, the $53-$58 space (marked in cyan) developed to be a bullish order block. It has been an space the place the consumers have managed to power good rallies.
Over the subsequent week or so, historical past might repeat itself. The OBV has additionally been in an uptrend since June, which meant shopping for quantity has been regular and persistently stronger than promoting stress.
However, repeated exams of a help stage are likely to weaken it. A every day session shut beneath $58 would doubtless see ZEC dip additional to $55 and $53, the place one other shopping for alternative might come up.
But, the momentum remained with the sellers, because the RSI has not been capable of rise above the 50 mark and keep above. Invalidation of the bullish can be a drop beneath $52.9.
ZEC- 2-Hour Chart
Supply: ZEC/USDT on TradingView
The two-hour chart highlighted the dearth of a powerful development prior to now three weeks. The $66.7 space, as soon as extra highlighted in cyan, was a bearish order block from late August. Furthermore, the identical space has been examined twice since then as a resistance band.
ZEC has ranged between $66.2 and $57.4 since late August. This might stay unchanged. The OBV was additionally caught inside a variety to bolster the notion of a steadiness between shopping for and promoting quantity.
But, the Superior Oscillator confirmed a bullish divergence. Each the RSI and the AO confirmed bearish momentum. As the value headed right into a help stage, the momentum might start to reverse.
Conclusion
Promoting stress behind Bitcoin has been sturdy in latest weeks, and that might keep the identical means heading into the weekend. Subsequently, any lengthy positions on Zcash may very well be inherently dangerous. Ethereum additionally fell beneath $1500, and the worry available in the market might power additional losses.
