The price of Zcash surged by more than 50% this month, first when it went nearly up 20% and then when it shot by additional percentage points to arrive to $47.6 which has been its April high. Currently, ZEC is stable at around $45 but the question on repeating these gains still remains there among analysts.
The social volume of Zcash (ZEC) is reaching levels which have previously indicated local tops. There are many different technical indexes and outlooks which are signaling that a correction is underway.
If all of these are validated, the high correlation between ZEC and some of the top cryptocurrencies could obviously spell trouble for the rest of the market. Currently, ZEC is in the shadow, but we should not forget that Zcash surged by more than 50% this month alone and could continue its rise very soon.
The Zcash news now show strong technical metrics. According to Santiment which is a behavior analytics firm, the ZEC social volume spiked to a high of 25 in the last few hours. This short-term signal is indicative of profit-taking opportunities – unless the metric continues as these high levels in the following days.
On top of all this, the TD sequential indicator has been incredibly accurate at predicting local tops. Over the past month, the technical index presented three different sell signals in the form of green nine candlesticks which were all validated. After the bearish formations, Zcash fell by 20%, 4.7% and an additional 18%, respectively.
Now, the TD sequential setup is once again showing a bearish signal, although the price of Zcash surged by more than 50% in the previous news. If the strength remains, ZEC could definitely visit higher grounds and plummet for one to four candlesticks before continuing its uptrend.
However, the scenario of a downward impulse is also here, and it could see the altcoin drop to the 23.6% or 38.2% Fibonacci retracement levels. These support barriers now sit at $40.6 and $36.3, respectively.
Nonetheless, a further increase in the ZEC demand could help avoid this pessimistic outlook. In order for this to happen, Zcash needs to break above the 200-twelve-hour moving average and turn the resistance level into support.