ZCash fell 3.82% over the past 24 hours, following Bitcoin’s slide to the $87.5k low.
While Bitcoin [BTC] managed to bounce higher, ZCash [ZEC] was not able to undo the recent losses.
In a recent report, AMBCrypto noted that a rally to $605 was on the cards after a breakout from a descending channel. Another report observed that, so long as the $382-$395 demand zone was defended, there’s a chance of a ZEC rally.
As things stand, the bullish momentum has slowed down in recent days but has not died down.
There is still the possibility of a ZCash recovery. However, the market-wide sentiment is impacting the altcoins.
The underperformance of the privacy sector, with Monero [XMR] and Dash [DASH] down 0.89% and 14.5% within the past four days, helped explain the ZCash performance.
ZCash continues to defend the $400 support
On the daily chart, the move past the $409.3 local high on the 9th of December confirmed a bullish structure shift. Additionally, the $410 area was an imbalance on the same timeframe from the end of November.
Highlighted in white, the imbalance has served as a steady demand zone in recent days.
The OBV has begun to push higher, and the RSI signaled momentum was turning as well.
On the 1-hour chart, bearish momentum and structure were observed. The OBV also showed heightened selling pressure since Friday, the 12th of December.
Chances of a breakdown below $400?
So far, the psychological $400 support has held up well, but multiple retests of the same level weaken it.
Over the past week, this support has been tested thrice. Given the lower timeframe selling pressure, a breakdown was possible.
Traders’ call to action – wait for THIS trigger for longs
It is best to allow the lower timeframe to align with the higher timeframe trend before looking to trade in the trend’s direction. In ZEC’s case now, a move above the $425 local resistance and a retest of the same would offer a buying opportunity.
Traders can look to remain neutral until market-wide sentiment and Bitcoin capital inflows improve, as BTC faced high selling pressure recently.
Final Thoughts
- ZCash was unable to clear the $480 resistance and has retraced back to the $400 psychological support.
- ZEC bulls are likely to have more success in the short-term, provided the $425 supply zone is overcome.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
