Zcash Price Forecast: ZEC at the Threshold Ready for Takeoff Beyond $160
- Zcash renews the uptrend as bulls battle with the resistance at the 100 SMA on the four-hour chart.
- ZEC's path with the slightest resistance is upward based on the transactions history model.
- The MACD sustains a bullish divergence, adding credence to the uptrend.
The privacy-focused Zcash tumbled from June's highs of $175 as Bitcoin retraced to $31,000. The selloff was not unique to these two assets but affected most cryptocurrencies. ZEC plunged to under $120 before securing support at $118.
A recovery mission has been underway since Sunday, with Monday recording the biggest jump. At the time of writing, Zcash trades at $141 while bulls go head-to-head with the seller congestion at the 100 Simple Moving Average (SMA).
Zcash uptrend intact despite the short-term hurdle
The four-hour chart hints at ZEC's price remaining in the hands of the bulls, notwithstanding the resistance at the 100 SMA. Note that a four-hour close above $140 will emphasize the bullish outlook. Besides, the 50 SMA is in line to provide support and prevent further losses.
A comprehensive look at the four-hour chart shows a bullish impulse, as presented by the Moving Average Convergence Divergence (MACD). The MACD lines oscillate around a mean line (zero line), giving the impression of oversold or overbought market conditions.
In other words, this indicator measures the momentum of assets while following its trend. The MACD line (blue) will cross above the zero line during an uptrend, while in a downtrend, it will cross below the zero line.
Traders also use this technical tool to identify both buy and sell signals. Realize that if the MACD line crosses above the signal line, it is a buy signal. On the other hand, it is a call to sell when the MACD crosses under the signal line.
Therefore, it is imperative to say that Zcash is comfortably in the bulls' hands based on the MACD's technical outlook. However, a break above the 100 SMA is required to pave the way for gains aiming for $160. An uptrend coming into the picture may weaken at the 200 SMA, currently holding at $166.
ZEC/USD four-hour chart
Meanwhile, the IOMAP on-chain model by IntoTheBlock illustrates an immense support zone running from $125 to $142. Here, nearly 52,200 addresses previously bought roughly 1.4 million ZEC. This robust support will prevent losses from extending toward $100. On the upside, it shows that bulls do not need to worry about anchorage but focus on gaining ground above $160.
Zcash IOMAP model
Glancing upward also shows that minor resistance hindering Zcash from rallying above $160. The subtle hurdle holds between $159 and $176, as observed on the IOMAP model. Here, roughly 35,800 addresses previously bought around 662,000 ZEC. Trading above this seller congestion zone could catapult Zcash price toward $200.
On the other hand, we cannot ignore the 100 SMA resistance because if not broken soon, overhead could mount, paving the way for losses under $140. A daily close under $140 will likely call more sell orders in the market as Zcash price drops toward $118.