As the baseline (green) of the Bollinger Bands (BB) narrowed revival efforts for nearly seven weeks, Zcash decided [ZEC] bears pushed the altcoin to annual lows last week. The baseline has paralyzed the buyers’ ability to hold close to the top band of the BB.
With the current setup of the rising wedge being solid, a recovery to the $113 level could cause a slowdown. At the time of going to press, ZEC was trading at $103.9, down 2.63% in the last 24 hours.
ZEC Daily Chart
Source: TradingView, ZEC/USDT
Since the multi-month spikes in April, ZEC bears have continued to drive the price south after causing a disturbance in the up-channel. On its way down, price action underwent strong liquidations as the BB’s baseline narrowed bullish comebacks.
As a result, the alt fell nearly 67.42% (as of March 28) before falling to its 16-month low on May 12. After the $83 baseline created some hurdles for sellers, the bulls quickly set off a string of short-term green candles. After forming a morning star candlestick pattern, the altcoin continued its oscillation in a bearish rising wedge.
A continued trajectory in the current pattern may face strong barriers in the $113 zone. This area represented many barriers, including the top fence of the Pitchfork, the 38.2% Fiboancci resistance. Any reversal from this zone could result in the wedge breaking out and finding testing grounds in the $96 zone. In the unlikely event that strong bearish trends are invalidated, any close above the USD 113 level could test the USD 126 level.
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The Relative Strength Index showed a gradual upward trend from the oversold lows. To the extent that the 41 support was strong, the buyers still had conceivable means of slowing the liquidations in the near term. But with the -DI line looking north, controlling selling pressure could pose a looming task for the bulls.
Conclusion
In light of the confluence of multiple hurdles in the $113 zone, ZEC could see a short-term pullback. Any close below the wedge could result in a path to the lows in the $96 zone. To change the existing story, the bulls must find a place beyond the pitchfork and the 38.2% level.
Finally, it would be important to keep an eye on Bitcoin’s movement and broader sentiment to complement the aforementioned analysis.
This post zcash [ZEC]: Breaking Down the Potential Effects of the Current Bearish Structure
was published first on https://ambcrypto.com/zcash-zec-breaking-down-the-potential-effects-of-the-current-bearish-structure/
