ZCash was listed on the popular crypto exchange Bitget on the 3rd of December.
Since that day, ZCash [ZEC] has rallied 30.8%, going from $312.8 to $409.2.
A recent report suggested that $360 was an important support zone. So far, it has been defended.
The next target of $480 was feasible, now that the psychological $400 level has been cracked. While critics have called the ZEC rally “coordinated“, traders might not care as much as investors. Where there is volatility, there is money to be made.
Piecing together the opposing ZCash clues
Source: ZEC/USDT on TradingView
From a price action perspective, both the swing structure and, more recently, the internal structure, on the daily timeframe, were bullish. The imbalance (white box) at $395-$425 has been filled. Therefore, more gains were likely.
Even so, the indicators reflected weak demand. The CMF sat at -0.25, showing clear selling pressure. The Money Flow Index stayed below 50, signaling muted inflows.
This left traders focused on volume trends. If demand failed to strengthen, the price could consolidate near current levels.
Source: ZEC/USDT on TradingView
The 1-hour timeframe’s indicators showed good capital inflows and momentum, although momentum has slowed in recent hours. They were at odds with the daily timeframe, but that was not a concern.
Additionally, the zone between $382 and $395 formed a short-term demand pocket. A break below it could trigger a move toward $330–$350.
By contrast, a rally above $425 might open the path toward $480.
Examining the bearish ZCash scenario
A bearish outcome would begin with a breakdown below $380 followed by a retest of that area as supply.
That shift set up the invalidation for bullish traders because ZEC maintained bullish structures on the daily, 4-hour, and 1-hour charts.
Traders’ call to action- When to go long
Now is a good time to go long.
The bearish scenario would act as the bullish invalidation. Meaning, bullish traders can place their stop-loss at or just below $382, and target $480 next.
Other targets include $550 and $610.
Final Thoughts
- ZCash’s trend carried strength, yet its demand profile remained uneven across timeframes.
- A break of support could reset expectations, while sustained momentum may help ZEC reclaim higher ranges.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Credit: Source link