Zcash (ZEC) Closing Towards a Major Resistance!
When it comes to privacy, even cryptocurrencies and blockchain aren’t secure. Zcash users have the option to keep their identity either public or shielded; it empowers users to decide whether or not they intend to enable the privacy feature. Once the privacy feature is enabled, Zcash uses a privacy feature called zero-knowledge cryptography, which is achieved using special cryptographic proofs called ZK-SNARKS.
Anonymity on sending money and making transactions protects people from attack, and this feature has essentially popularized Zcash amongst millennial investors. After making a high of $372 on May 12, 2021, Zcash has been in a downtrend, making a low of $85.71 caused by overselling and profit booking, that too within two weeks.
Since taking support near $85, Zcash has attempted to stay afloat and delivered a 100% retracement within a week. While the technology, blockchain, and its anonymity feature provide too much confidence, we are still far from realizing the true potential of privacy coins such as Zcash.
After being in a negative trend line for the last two weeks, it broke the negative trend with good volumes on the 29th of June 2021. What further scope lies in Zcash can be identified using highly accurate technical indicators and price action.
Zcash Technical Analysis
100 Day Moving Average- $185
200 Day Moving Average- $147
Immediate Resistance Levels- $146
Immediate Support Levels- $90
Since Zcash fell more than 75% in May 2021, it broke all its support and traded with a little support and lowered price action at $90 levels. As of now, we are witnessing a rise in volumes followed by strong technical indications of it moving to higher highs. At current we are witnessing a small profit booking after five consecutive days of closing higher. Since the price is training above the trend line, it provides a sigh of relief to the investors of Zcash.
The resistance is active alongside the 100 and 200 day moving averages at $147 and $185. One should stay invested as long as it takes support from the trend line. The positive sentiment along the broader crypto market has caused this rally in Zcash. There is no other positivity in this cryptocurrency.
The MACD indicator shows a rise of a new trend in the current swing, and it should continue for a few days. While Zcash challenging the resistance of 200 days at $147 is possible in the short term, it wouldn’t be reaching that level in one swing. After the end of the current swing, a new round of fresh buying should begin.
Zcash has entered its third swing since rising about the $120 mark, and as of now, there is some clear indication of profit booking. Breaking the $120 mark at current volumes could push Zcash below $100.
According to Zcash predictions, traders should maintain a strict strategy and shouldn’t allow them to be affected by the fear of missing out. The valuations might be volatile in the short term. Getting a good buying range could become difficult; one should try purchasing smaller quantities in multiple attempts to average out the price over days.
No doubt Zcash has the potential to reach higher levels, it has just started to retract some of its recent gains. MACD has also signaled the beginning of a new swing which is red; hence positioning your trades will be instrumental in making short-term profits.