Horizen (ZEN) Approaches July Lows After Breakdown

Share Article
In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.

Horizen (ZEN) has broken down from a pattern that previously was in place since July. In order for the upward movement to continue in the long-term, it is imperative that ZEN bounces at the current price level.

Sponsored





Sponsored

ZEN had been increasing since July 20, trading inside an ascending parallel channel. The pattern led to a high of $138.31 on Nov 26. At the time, it seemed like the token had also broken out from the $120 resistance area. 

However, the token fell shortly afterwards and validated the $120 area as resistance once more (red icon).

Sponsored



Sponsored

More importantly, ZEN broke down from the channel on Dec 4, suggesting that the previous upward movement had come to an end. 

If the downward movement continues, the closest support area is at $50, created by the July lows.

Chart By TradingView

Current bounce

Cryptocurrency trader @TradingTank outlined a ZEN chart, stating that the token could soon bounce at support and continue higher.

Source: Twitter

Since the tweet, the token has fallen below the support line.

However, there is an interesting similarity between the previous drop, that transpired on Sept (highlighted), and the current one. 

If the token were to have reached a low, the current decrease would have a magnitude of exactly 1.61 that of the Sept drop. This is a very common ratio. 

However, in order for it to hold, it is crucial that ZEN does not reach yet another low.

Chart By TradingView

Future ZEN movement

In order for the upward movement to continue, it is very important a bounce at the current level transpires.

If not, the entire upward movement since July (highlighted) would be considered corrective.

In that case, ZEN would fall and sweep the July 20 lows (red line), and potentially decrease lower.

Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Unlock Next-Level Trading Experience — Earn up to 8.88% APY      

Join

Unlock next-level trading on Bybit with your favorite metaverse      

Join

Bybit New Token Listing: Win In-Game NFTs and SIDUS Tokens.      

Win Now!