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ZEC Technical Analysis: Strong Sell Signal Lights At $100 

cryptoknowmics.com 14 May 2022 11:27, UTC
Reading time: ~2 m

ZEC prices showcase an extended lower low formation giving rise to a strong resistance trendline. Will the underdog buyers surpass this trendline? Key technical points:

  • The ZEC prices grew by 20% in the last 72hours.
  • Zcash prices challenge the psychological mark of $100. 
  • The 24-hour trading volume of Zcash is $195 Million, indicating a 30% fall. 

Past Performance of ZEC

ZEC prices plummeted after the head and shoulder breakout, as mentioned in our previous analysis, resulting in a prolonged downtrend in motion. The decline comes with a boom in selling pressure and consecutive bearish candles that cut 80% market's value last month. Finally, the buyers enter at the support trendline resulting in a morning star pattern and a 20% jump. TradingView Chart Source-Tradingview

ZEC Technical Analysis 

ZEC price action attempts to form a three-white soldiers pattern but approaches the resistance trendline, lowering the chances of further continuation. Moreover, the falling trend in trading volume reflects the buyers pulling back the support, which warns of a bearish reversal. The sideways trend of the daily EMAs (50, 100, and 200-day EMAs) develops into a bearish alignment indicating a solid downtrend in motion and demonstrating the high possibility of the $80 fallout. The RSI slope exceeds the average of 14 days but struggles to sustain the uptrend and eventually leads to a sideways trend. In addition, the Stochastic RSI shows the K and D lines rising higher after showcasing a bullish divergence in the oversold zone and approaching the overbought zone.  In short, the ZEC technical analysis depicts a high likelihood of a bearish reversal within the falling channel.

Upcoming Trend

If the sellers at the junction of $100 and the resistance trendline overtake the trend control, ZEC prices will dig deeper under the $80 and reach the $66 mark. Finally, however, a bullish breakthrough above the trendline will skyrocket the prices to $135. Support Levels: $80 and $66 Resistance Levels: $100 and $135

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