Zcash is an open-source protocol based on blockchain technology with advanced privacy features. It is fast, safe, and highly cost-efficient for digital money transactions. It is forked from the Bitcoin codebase. ZEC is the prime governance token of this ecosystem and the technical analysis is as follows:
On April 28, 2021, ZEC started trading at $239.86. On May 4, 2021, ZEC closed at $241. Thus, in the past week, the ZEC price hasn’t surged significantly. In the last 24 hours, ZEC has traded between $237.33-264.68.
Currently, ZEC is trading at $255.19. The price has increased from the day’s opening price of $241.17. Thus, the market seems to be uptick.
The MACD and signal lines are negative. Thus, the overall market momentum is bearish. However, a bullish crossover by the MACD line over the signal line has occurred. Moreover, both the lines are close to the zero line and may turn positive soon. Hence, a bearish trend reversal may be on the anvil.
Currently, the RSI indicator is at 47%. It faced rejection at 40% and rose to the current level. Thus, buying pressures are slowly mounting. Hence, both the RSI and MACD oscillators are indicating that the price may start rising after an intermittent price pullback.
The OBV indicator too is steadily rising. Thus, buying volumes are higher than selling volumes. Hence, the OBV indicator is giving further credence to an impending price rise or bearish trend reversal shown by the MACD and RSI oscillators.
Currently, the price is below the first Fibonacci pivot resistance level of $258.12. It may fall up to the pivot point of $247.67. Thereafter, we have to wait and watch to see if a trend reversal occurs and the price starts increasing.
The price has tested and fallen below the 23.6% FIB retracement level of $258.22 and may soon fall below the 38.2% FIB retracement level of $254.23. If the price retests and breaks out of these levels by day end, then the bullish trend is strong enough to sustain till tomorrow.