• Zcash breaks monthly high but the bullish continuation is still under confirmation
• ZEC sees 9.04% growth amidst indecisiveness in the crypto market as a whole
|⠀Key ZEC resistance levels:||$65.16, $70, $75|
|⠀Key ZEC support levels:||$56.8, 50.3, $46|
*Price at the time of writing
ZEC price long-term prediction: Bullish
The recent Zcash price spike is following the news that the Zcash community has decided on a new process of distributing mining rewards. The new mining rewards distribution will come into effect in November and will support development of the privacy-focused cryptocurrency. Could this have been the reason for the latest surge in ZEC price?
The latest shake-up in the crypto market is not affecting the price of Zcash. Instead, ZEC has displayed additional gains over the last 24 hours of trading. Scaling this increase, ZEC is currently up by 9.04% with the price roaming at around $65. A parabolic move seems to just be getting started for Zcash.
Using the Fibonacci retracement levels, we can see that Zcash recently found a monthly correction support near the $46 (0.5 fib) price level. This support has produced a notable momentum characterized by five bullish candles. This surge has brought the ZEC price slightly above the 1(65.16) fib level.
The current break above the monthly high cannot be considered valid for a continuation until we see a clear daily candle close. In case of further bullish momentum, Zcash is eyeing $70 and $75 on the upside. However, Zcash is now extremely overbought according to the RSI and MACD indicators. In case of a drop, the market could find support at the $56.85 and $50.33 price levels.
ZEC price medium-term prediction: Bullish
Following the weekly bounce from $46, ZEC has seen a substantial increase to $66 and broke its previous January high of $65. As shown on the 4-hour chart, Zcash is still finding its footing for the next bullish rally. If the 1 fib level holds well, the price of ZEC could increase to around $70 soon.
The 25th largest cryptocurrency on the market cap is gaining momentum on the RSI indicator. The MACD is currently bullish with strong momentum. However, if these technical indicators turn downward, Zcash may correct, and the retracement level to watch out for are the 0.786 ($61.05) and 0.618 ($57.9) fib levels. A further drop could lead to a slight bearish scenario. The situation could become uglier if the 0($46.38) fib level breaks.
ZEC price short-term prediction
ZEC has been trading well above the 1 fib level over the past few hours. However, it appears that the bulls are getting weak. As we can see, volatility is becoming subdued with choppy price action. More importantly, the RSI is changing trend to a lower direction and the MACD is about to follow suit.
If these bearish signals play out on the price chart, Zcash is most likely to fall back towards the 1($64.39) fib level. Rolling beneath the above fib level could plunge the price further to the 0.786($62.12) fib level and beyond, resulting in a fake out.
Zcash is still looking for more gains while Bitcoin is showing some stability. If the price drops and closes beneath the 1 fib level today, ZEC may roll back to key support levels. However, a clean close above this fib level could trigger more gains.
Previous ZEC price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 2 of our most recent articles about the price of Zcash: