Altcoins

Zcash retests $56 as resistance; these Fib levels can serve as support

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.

Since early April, Zcash has been on a gentle downtrend. It fashioned a peak at $210 in late March, however its greater timeframe market construction has been bearish since mid-April. At the moment, the value fell under the $160 space, which had previously been a assist degree. The value retested the identical area as resistance later in April. It proceeded to set a sequence of decrease highs on the charts, a pattern that continued to the time of writing.

ZEC- 12-Hour Chart

ZCash retests $56 as resistance- here are some Fib extension levels that could serve as support

Supply: ZEC/USDT on TradingView

The downtrend has been interspersed with durations of fast rallies. One such occurred in mid-Might when ZEC bounced from $69.5 to $116.6. Within the following weeks, the value slowly bled and slid decrease down the charts to commerce at $52.7 on the time of writing.

Earlier this month, the world from $53-$57 was examined as a requirement zone and noticed a bounce to the $70 degree. Nevertheless, bears got here out on prime as soon as once more and compelled the value again under the $60 mark.

The Relative Power Index (RSI) confirmed a downtrend to be in progress in current weeks. It was unable to cross the impartial 50 line and indicated sturdy downward momentum on the 12-hour chart.

ZEC- 4-Hour Chart

ZCash retests $56 as resistance- here are some Fib extension levels that could serve as support

Supply: ZEC/USDT on TradingView

The aforementioned bounce from $69.5 to $116 was used to plot a set of Fibonacci retracement ranges. ZEC has damaged beneath every one in every of them, and prior to now two weeks, has additionally retested $70 as resistance. Up to now few days of buying and selling, each the $70 and the $62.5 space had been proven to be stiff resistance zones.

Moreover, consumers had been unable to drive costs any greater. When Bitcoin [BTC] slipped again under $20k, ZEC additionally misplaced a hefty chunk of worth and dropped from $60 to $52.7.

$52.9 was then a assist degree, and additional southward, $50 and $40.4 had been plotted as the following Fibonacci extension ranges to be careful for. Since $50 was a psychological assist degree as properly, it might halt the bearish stress for a number of days.

ZCash retests $56 as resistance- here are some Fib extension levels that could serve as support

Supply: ZEC/USDT on TradingView

The four-hour indicators additionally painted a bearish image for ZEC. The RSI was properly beneath the impartial 50 line. The Superior Oscillator (AO) additionally dropped sharply beneath the zero line in current days. Each these developments highlighted the extreme bearish momentum.

The Chaikin Cash Stream (CMF) was additionally beneath the -0.05 mark, to indicate vital capital movement out of the market. Nevertheless, the On-Stability Quantity (OBV) continued to carry onto a assist degree from Might.

Conclusion

If the OBV dipped beneath the assist, and ZEC additionally dropped beneath the $50 mark, it may very well be an indication that additional losses had been doubtless for Zcash. $40.4 was highlighted as a Fibonacci extension degree the place a bounce might happen. $44 was additionally a spot to be careful for. If Bitcoin additionally noticed a transfer under $18.8k, the drop may very well be hastened for Zcash.

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