Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Zcash, one of the largest privacy coins in the ecosystem, appeared to be experiencing a resurgence in interest as prices rose in recent days. The number of active addresses in the chain has nearly tripled from an average of 30k in the last month to 81k at the time of writing.
The transaction volume on the network was $227 million, in comparison, Ethereum had a 24-hour volume of $6 billion. Could the rupture in the market structure in the charts bring further gains to Zcash?
Since early December and slightly earlier, ZEC has been in a downward trend on the daily timeframe. However, in the past two months, the price has hit a series of higher lows. At the same time, it has not been able to climb past the USD 130 resistance until recently.
At press time, the price also climbed past $142 and appeared to have flipped to support. The market structure was now bullish – higher lows had formed and the most recent lower peak of the downtrend has also broken.
Therefore, a retest of the $142 (cyan box) area could be a buying opportunity. This purchase would target $172 and $190 as take profit levels. A close below $142 would invalidate this scenario.
On the daily chart, the RSI rose above 60 to show strong bullish momentum. ZEC often performed well as the daily RSI climbed above 60. The OBV also rose in recent weeks and appeared to be above the orange dotted line. This showed that the buying volume was high and the strong uptrend became more credible.
The DMI has not yet shown a strong uptrend, but the +DI (green) was well above 20 and the ADX (yellow) was about to climb above 20.
The longer-term bearish market structure was broken as the $130 and $142 resistance levels broke. As of going to press, the $142 area could be revisited and could be a buying opportunity for ZEC investors, with a target of $172 and $191. A daily session closing below $140 would invalidate this bullish scenario to make.
This post Zcash: Will it break the market structure to allow a buying opportunity at this level?
was published first on https://ambcrypto.com/zcash-will-it-break-the-market-structure-to-allow-for-a-buying-opportunity-at-this-level/