- Privacy-oriented Zcash token begins the grand breakout toward $225.
- The symmetrical triangle paves the way for bulls to shoot the price upward as technicals improve.
- Robust support highlighted by the transaction model reveals that bulls are in control.
Zcash is one of the leading anonymous cryptocurrencies in the industry. The token boasts $1.9 billion in market capitalization and is the 63rd largest crypto asset. According to the data by CoinGecko, ZEC is up 11% to trade at $172. Besides, it has attracted a trading volume of $1.2 billion across multiple platforms.
The widespread declines in May left no stone unturned in the crypto market, and Zcash suffered a significant breakdown from highs above $370 to the primary support at $100. An immediate recovery came into play, but the uptrend could not hit levels above $200.
Zcash renews the uptrend on account of key technical pattern
Zcash remained pivotal within the confines of a symmetrical triangle following the barrier at $200. Triangles of this nature have bullish and bearish impulses and are created using two converging trend lines. As observed on the chart, the trend lines are supposed to meet at an approximately equal slope.
It is worth mentioning that slicing through the upper trend line’s resistance marks the beginning of an uptrend. On the flip side, a bearish signal occurs when the price slides under the lower trend line.
Meanwhile, Zcash is trading above the symmetrical triangle, revealing that the expected breakout is underway. A four-hour close above the pattern will validate the uptrend. Moreover, buyers must focus on dealing with other critical hurdles at the 200 Simple Moving Average (SMA) and the 50 SMA to accomplish the liftoff to $225, a region highlighted by the 100 SMA.
ZEC/USD four-hour chart
A comprehensive look at the on-chain picture shows that buyers have the upper hand. This follows support between $142.6 and $159.6, according to the IOMAP model by IntoTheBlock. Here, nearly 48,000 addresses previously bought 1.74 million ZEC. Trading under this area would challenge the bears; thus, the slightest resistance path remains upward.
Note that the model shows little to no resistance ahead of Zcash. In other words, bulls have a relatively smooth path to work on gains above $225 and complete the symmetrical triangle breakout target at $225.
Zcash IOMAP model
Zcash bearish outlook
The four-hour chart reveals a technical hurdle at the 200 SMA on the four-hour chart. Closing the day above this level may lead to an increase in selling pressure. The immediate support at $170 must also hold to avert potential losses to the on-chain support highlighted by the IOMAP at $152.