Will Zcash Drop To $60?
BeInCrypto | Apr 18, 2019 02:07AM ET
On Apr 3, 2019, the price of Zcash (ZEC) reached a high of $78. A sharp decrease ensued. It reached similar levels on Apr 8. It has been decreasing since.
Will price losses continue for Zcash or can we expect a reversal soon?
Let’s find out.
h2 Zcash (ZEC): Trends and Highlights for Apr 17, 2019/h2- The price of Zcash has been on a gradual downtrend since Apr 3.
- It is trading inside a descending triangle.
- There is bearish divergence developing in the RSI.
- There is support near $60.
We analyze the price of ZEC on Binance at two-hour intervals from Apr 3 to Apr 15 in order to trace the current pattern.
The price made a low of $65.32 on Apr 4. A gradual upward move followed. Several market cycles have been completed since and the price has reached the same level three times.
Tracing these lows gives us a horizontal support line:
On Apr 3, the price reached a high of $78. A sharp drop was followed by a gradual increase. The price has made successively lower highs.
Tracing these highs gives us a descending resistance line:
The resistance and support lines combine to create a descending triangle, which is a bearish pattern, making price decreases more likely.
It is likely that the price will keep trading within the confines of this triangle until a decisive move occurs.
In order to figure out the direction of the move, we need to take a look at some technical indicators.
h2 Technical Indicators/h2
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The price of ZEC on Binance is analyzed at one-day intervals from Feb 26 to Apr 15 alongside the RSI.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.RSI is traced in the chart below alongside price:
On Apr 2, the price reached a high of $72.24. It reached another high of $76.99 on Apr 7.
Similarly, the RSI reached a high on Apr 2. However, it has proceeded to generate lower values.
This is known as bearish divergence and often precedes price decreases.
The use of this indicator combined with the creation of a bearish pattern indicates that it is likely that the price will break down from the triangle.
Where will it find support?
h2 Finding Support/h2To determine possible future price levels, we incorporate support areas into the analysis.
Support areas are created when the price reaches the same level several times. They can provide likely reversal areas in case a breakdown occurs.
One possible support area is shown below.
The closest support area is found near $60. It is likely that Zcash will continue moving toward this area, but a reversal may occur before it is reached. Furthermore, volatility may occur along this downtrend.
h2 Summary of Analysis/h2Based on this analysis, the price will likely trade inside the confines of the descending triangle and eventually break down. It is likely it will move toward the support area outlined above and possibly reach $60.
If you’d like to read long-term price predictions of Zcash, click on the green button below:
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