Other than the meteoric rise of BTC, we wonder if other alt coins will follow suit. Of course depending on the service or product which is being pitched, investor reception will determine if it will gain traction or not. Remember, over the past few days, high market cap alt coins have been pumped up following the Segwit 2X cancellation. One of buoyed alt coins was Zcash.
Well, there is more room to the upside if you consider what the technical indicators are hinting.
To begin with, June highs of $460 will most likely be hit now that Zcash bulls are ramping up their longs. In the weekly chart, there is a stochastics buy signal with diverging %k and %d signals and this is helping push prices higher.
As noted, over the last couple of weeks, prices have been appreciating along that minor support trend line shown in the chart. So far, bulls have managed to push Zcash prices above $220 and the 20 period MA resistance line. If it stays this way and Zcash continue to chart higher, it will be better to wait for better long entries in the lower time frames.
Furthermore, Zcash price action is range bound, oscillating inside a $180 horizontal channel. Main resistance line is found around $320 round number while support at around $140 is noteworthy for USD bulls.
In general, Zcash is gravitating upwards along that minor support trend line shown in the weekly chart. From October 22 to November 6, $200 was acting as temporary support with price action bound within a $55 range. The upper limit at $250 was broken on November 8 following that bullish candlestick with highs of $283.
At the moment, there are two levels to watch out for. The immediate resistance and support lines at $275 and $245. Since price action is within the larger bullish break out which has so far retested two levels of resistance at $210 and $230, we shall only be taking longs as long as there is no large price drops below the second resistance trend line retest at $230. Sellers are also pressing from the overbought territory and with a sell signal in place, it’s better to wait until a stochastic buy signal is printed.