Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Zcash confirmed a bearish divergence on decrease timeframes however has additionally flipped a zone of provide to demand in latest days. Regardless of Bitcoin exhibiting a robust drop from $42.7k to $40.7k, ZCash was not affected a lot negatively. Nevertheless, additional bearish sentiment throughout the market would possibly drive ZEC to drop as nicely.
ZEC- 1 Hour Chart
Supply: ZEC/USDT on TradingView
In white is a curve displaying the worth closing at increased highs on an uptrend. Analyzing the market construction on decrease timeframes we are able to see that the bearishness of April has been damaged up to now few days.
The $156 stage was the latest decrease excessive of the earlier downtrend, and it has been damaged and ZEC has additionally managed to flip the $159 space (cyan field) from provide to demand. On the identical time, the worth has additionally shaped a collection of upper lows, to recommend a bullish development over the previous two days.
Rationale
Supply: ZEC/USDT on TradingView
The RSI made decrease highs (white) whilst the worth pushed increased. This might see a pullback for ZEC. On the time of writing, a pullback has already begun, as ZEC dropped from $169 to $161.5. The RSI has not dipped beneath the impartial 50 stage, which meant that the decrease timeframe bullish momentum might proceed.
The OBV has additionally been rising not too long ago, to point out regular demand behind the bullish development. This demand might stop ZEC from falling beneath $159 over the following few hours. The DMI additionally confirmed a robust uptrend on the verge of ending. The ADX (yellow) was above 20 however the +DI (inexperienced) might dip beneath 20, based mostly on the session shut.
Conclusion
The development over the previous couple of days might proceed to see demand arrive and drive costs increased. Regardless of the bearish divergence, the demand zone remained intact. A session shut beneath $156.6 might shift the bullish bias behind ZEC.
