The Zcash price briefly reached an all-time low of $25.50 before bouncing upwards. The price is looking to reclaim the $31 resistance area and continue moving higher.
Zcash’s inability to maintain lower prices suggests that the chances for a reversal are high. Additionally, the movement is also supported by positive news, since the Zcash foundation announced yesterday that it has released “Blossom,” the newest Zcash network upgrade.
— Electric Coin Company (@ElectricCoinCo) December 11, 2019
— Wolf Daddy (@FundamentalWolf) December 11, 2019
Will Zcash increase and, if so, how high will it go? Continue reading below if you are interested in finding out.
ZCash: All-Time Low
On November 25, 2019, the ZEC price reached a low of $25.58. This was slightly lower than the all-time low of $26.30 reached in 2017.
Additionally, the three-day RSI fell at 30, right at the upper limit of the oversold level. Additionally, it has generated strong bullish divergence.
The RSI fell to near 30 twice previously and upward moves of 119 percent and 136 percent ensued.
As for the Risk:Reward ratio outlined in the tweet, a hypothetical scenario of entering a long trade at $30, with a stop loss below $25 and a target of $110, given by the June highs, would give us a 12:1 R:R ratio.
The ZEC price traded in a range between $31 and $41 throughout October and the first half of November.
On November 20, it broke down below this support area. The breakdown transpired with low volume. Afterward, the Zcash price increased and validated the area as resistance.
Besides the low volume, there are several signs which suggest the Zcash price will reclaim the resistance area.
First, the price created an Eve & Adam double bottom, which is considered a bullish pattern. Afterward, a bullish cross between the 10- and 20-day moving average (MA) transpired.
Also, there is strong bullish divergence in both the RSI & the MACD. This suggests that the Zcash price will again trade inside the $31-$41 area.
The chart outlook for ZEC/BTC also looks bullish.
The Zcash price just broke out from a descending wedge it had been trading since the beginning of September.
The breakout transpired with significant volume and the Zcash price is currently moving towards the high of the wedge at ₿0.005.
To conclude, the ZEC price has returned to its 2017 levels and briefly traded at an all-time low. Technical indicators and previous movement suggest that it will soon initiate a reversal. Reclaiming the $31 resistance area is the first step in doing so.
Images courtesy of TradingView.
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Source: Be In Crypto