- Zcash signals local top after surging by 60% in the last month
- Zcash may have hit an exhaustion point in its recent upward movement
- Different technical indexes prove that a correction is underway for Zcash
Zcash News Today – on-chain and technical metrics support suggestions that the privacy-based digital asset, Zcash has reached a local top. This move could have severe implications for cryptos overall. Zcash is up by nearly 13% in the last 24-hours of trade.
The privacy coin rose from $29.7 to a high of $47.6 recently. Now, this price position could serve as a local top. Behavior analytics firm, Santiment thinks this is the case. The firm remarked that ZEC’s social volume rose to a one month high of 25 over the past few hours. The short-term signal posted for Zcash is indicative of more profit-taking opportunities.
A Retracement is Imminent For the Price of Zcash
The TD sequential indicator for Zcash has been accurate at giving local top predictions. In the past 30-days, this technical index has presented three different sell signs in the form of green 9 candlesticks all of which were validated. After these bearish formations, Zcash price fell by 20%, 4.7%, and 18%. Now, that the TD sequential setup is providing a bearish signal and when you consider the 200-12-hour MA, it is looking more likely that the predicted signal will be validated. After this, the ZEC price could plummet for one to four candlesticks before going back up.
This type of downward impulse could ensure that the privacy cryptocurrency could decline to the 23.6% or 38.2% Fib retracement areas. These support areas sit at $40.6 and $36.3. Nevertheless, a further rise in demand could ensure that the pessimistic outlook is avoided. For this to occur, Zcash must break above the 200-12-hour MA and turn the above resistance level to a support area. In such situations, along with a fresh rise in social volume, the price of ZEC could reach $54 or $64.
The Impact of Zcash’s Recent Movement on the Digital Asset Market
According to BitInfoCharts, Bitcoin and Zcash have a high correlation. The flagship crypto and the privacy-based altcoin maintain a correlation coefficient of 0.97% which is a positive linear relationship. Going by this premise, a drop in the price of ZEC could see the value of BTC fall as well and consequently the rest of the cryptocurrency market as well.
Note that multiple altcoins, including Ethereum and Litecoin, have seen their social volumes increase to local tops. The TD sequential indicator has posted the same sell signal in most of the top ten virtual currencies. Even though it is still too early to suggest that Zcash will lead the cryptocurrency market to a steep correction, traders must be cautious.