Zcash Price Analysis: ZEC Flashes Multiple Sell Signals After Hitting Highs of $350

Last Updated July 23rd 2021
2 Min Read
  • Zcash runs into a massive hurdle delaying the uptrend eyeing highs past $500.
  • ZEC’s correction begins with losses threatening to revisit levels under $300.
  • The privacy-centric token Zcash has sustained an uptrend from the beginning of the year. Although the growth has been gradual with many pullbacks, the trend has primarily stayed bullish. At the time of writing, Zcash teeters at $302 amid a correction from highs around $340. Support at $300 is expected to refocus the bulls to higher levels around $400 and $500.

    Zcash seeks higher support to sustain the uptrend

    At the time of writing, Zcash is pivotal at the ascending parallel channel’s middle boundary. Holding in the upper layer of the channel is a bullish outlook and may call more investors into the market as speculation for massive gains to $500 becomes apparent.

    Closing the day under the middle boundary could trigger massive sell orders as investors panic-sell for profit. On the downside, support is envisaged at $270, the 50 Simple Moving Average (SMA) on the 12-hour chart. The channel’s lower boundary support is also in line to offer the much-needed support.

    ZEC/USD 12-hour chart

     Zcash ZEC 12-Hour Chart

    The Moving Average Convergence Divergence (MACD) indicator on the 12-hour chart has a bearish impulse as observed on the chart. After hitting a high of 25, the indicator has started to retreat. Moreover, the MACD line (blue) is almost crossing under the signal line, validating the downswing.

    In/Out of the Money Around Price (IOMAP) model reveals that Zcash ran into a robust resistance running from $312 to $329. Here, nearly 11,800 addresses have previously bought around 50,000 ZEC.

    Zcash IOMAP chart

     Zcash ZEC IOMAP Chart

    It is worth mentioning that the token’s downside has been supported between $278 and $295. The robust support was made possible by the roughly 15,700 addresses that previously bundled up 67,400ZEC.

    If Zcash sustains the position above this zone, buyers will have the upper hand to forge another mission for gains eyeing $400 to $500. Meanwhile, a consolidation period may ensue in the coming sessions ahead of a breakout past the hurdle between $312 and $329.

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