ambcrypto.com
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Zcash [$ZEC] has seen a lot of volatility over the past few days. In fact, the premier privacy token fell by 31.1% in three weeks, falling from its $1,698 high to $1,168.
The $1,041-level is a vital level for the bulls to defend. So long as $ZEC is above this level, a bullish structure would be in play.
Here’s how Zcash’s price action can unfold in the coming weeks.
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The rally from $1,041 to $1,698 started in September. Within a month, almost the entire move was retraced. On the 1-day timeframe, the Zcash Bollinger Bands remained wide apart, signaling high volatility on this timeframe.
The uptrend from March to May earlier this year was followed by a pullback towards $400 and a consolidation phase.
A similar pullback was in progress for $ZEC. The $1,041-level kept the bullish swing structure intact. In the coming weeks, a consolidation phase above the psychological $1,000-level and compressed Bollinger Bands would be an ideal outcome for the bulls.
However, an extended Bitcoin [BTC] correction, or a bearish spark in $ZEC sentiment, could send the altcoin’s price tumbling lower.
Crypto technical analyst Altcoin Ardi used the 4-hour chart of Zcash to underline the $1,095-area as a critical support zone, and the $800-area as the prior swing highs’ liquidity zone.
The worst-case scenario for the privacy token bulls would be a lower high after a bounce from $1.1K, followed by a dip into this critical support.
The lower high and the lower low on the H4 timeframe have already occurred. The successive lower lows were a concern as it pointed to dominant bears and the likelihood of a deeper correction.
A daily session close below $1,041 would likely see $ZEC fall towards the previous long-term liquidity pocket around $750-$800.
