ZCash [ZEC] has rallied 5% in the past 24 hours as its daily trading volume surged by 56%, showed CoinMarketCap data. The quick gains were accompanied by heightened speculative interest.
Open Interest surged by 10% in a day, and the altcoin was targeting the $400 resistance zone following its bounce from $300 two weeks ago.
AMBCrypto had reported earlier in April that the long-term price structure was bullish. In the coming days, ZCash bulls may succeed in flipping the $400 resistance level to support.
ZEC labors under a short-term trendline resistance
The ZCash swing structure was bullish. As pointed out earlier, $187 was the 78.6% Fibonacci retracement level. Recently, the $308 area, which was the 61.8% retracement level, has also served as a demand zone.
This meant that the ZEC bias can safely be bullish. A price drop back below $207.88, the swing low set near the end of March, is needed to flip the swing structure bearishly.
This outcome does not seem likely in the coming weeks. The RSI on the daily timeframe remained above neutral 50 to signal bullish momentum, and the OBV has made a sizeable move higher in April.
Despite the positive reaction at $300, the trading volume has dramatically slowed down over the past week. Combined with the local trendline resistance, it posed an obstacle that needed greater capital inflows to combat.
Traders’ call to action – Stay bullish but prepare to take profits
The 4-hour chart above illuminates the possibility of a range formation between $301-$368. The local highs set in the $370-$390 area in mid-April represented a stern supply zone that might take a while to crack.
The higher timeframes suggest that the current uptrend is likely to continue. At the same time, the dense cluster of short liquidations from $370 to $390 was a sizeable magnetic zone that could pull ZEC higher before a rejection toward $300.
Therefore, traders can look to use a move into this pocket of supply to take profits. A pullback would signal a range formation in play.
On the other hand, a breakout past $390 and a retest of the same as support would offer a buying opportunity.
Final Summary
- ZCash has a bullish long-term outlook but witnessed a slowdown in trading volume over the past week as it faced trendline resistance.
- The short liquidations overhead meant that $370-$390 was the immediate ZEC price target.
Credit: Source link