Stochastic RSILooking at both the 3-day and two-week stochastic RSI, we can see ZEC seems to be overbought and will most likely experience more selling-off in the next few days. This could allow for some consolidation and a retest of the new low level in the neighborhood of $65 to $75.
Premature CelebrationZEC has fallen within the confines of a descending channel and has established supports on the way down at the $170, $115 and most recently, $70 levels. Considering the Stoch RSI, it is likely that the bounce off of the $70 support will fall back to test the range and could potentially pierce the support briefly before returning and trading sideways towards the descending line. [bctt tweet=”Unless Bitcoin makes a significant move within this time, ZEC could go lower to test its all-time low levels in the $30 range.” username=”beincrypto”] Short term traders should beware that the risk of another 50 percent dip is likely not worth the potential rewards of a small move to the upside, depending of course on your risk allowance. It would be best to wait for confirmation of movement once the price gets closer to the descending line to enter a position, most likely in Q1 of 2019. Will ZEC be able to break out of the descending trend before the end of 2018? Will ZEC reach a new all-time high in 2019? Let us know your thoughts in the comments below! Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold ZEC.
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