ZCash made its debut on the popular crypto exchange Bitget on December 3rd.
Since then, the price of ZCash (ZEC) has surged by 30.8%, soaring from $312.8 to $409.2.
An analysis pointed out that the $360 level was a crucial support zone, which has been successfully defended so far.
With the psychological barrier of $400 breached, the next target of $480 seems attainable. Despite some critics labeling the ZEC rally as “coordinated“, traders are focusing on seizing opportunities in the market volatility.
Deciphering the conflicting signals of ZCash
Source: ZEC/USDT on TradingView
From a technical standpoint, both the swing structure and recent internal structure on the daily chart suggest a bullish trend. The price range between $395-$425 has been filled, indicating potential for further upward movement.
However, indicators show weak demand with the CMF at -0.25 and the Money Flow Index below 50, reflecting subdued buying pressure.
Traders are closely monitoring volume trends, as a lack of increasing demand could lead to price consolidation at current levels.
Source: ZEC/USDT on TradingView
On the hourly timeframe, there are signs of strong capital inflows and momentum, although recent hours have seen a slowdown in momentum. Despite conflicting signals between the daily and hourly charts, traders remain optimistic.
A short-term demand zone between $382 and $395 has formed, with a break below potentially triggering a decline towards $330-$350.
Conversely, a breakout above $425 could pave the way for a push towards $480.
Exploring the bearish scenario for ZCash
A bearish scenario would involve a breakdown below $380 followed by a retest of that level as resistance.
This shift would challenge the bullish structures observed on multiple timeframes, including the daily, 4-hour, and hourly charts.
Trading Strategy – Timing for Long Positions
Now is considered a favorable time to enter a long position.
The bearish scenario serves as a stop-loss placement guide for bullish traders, with a stop-loss set at or slightly below $382 and a target of $480 in sight.
Additional price targets include $550 and $610.
Conclusion
- ZCash’s uptrend remains robust, although demand dynamics vary across different timeframes.
- A breach of key support levels could alter market expectations, while sustained momentum may propel ZEC to higher price ranges.
Disclaimer: The content provided is the author’s personal opinion and should not be construed as financial, investment, or trading advice.