Zcash (ZEC) is a privacy-focused cryptocurrency which utilizes zero-knowledge proofs to enhance the anonymity of the transacting parties.ZEC has been on the market for more than two years and recorded an all-time low of $27 in Feb 2017. ZEC climbed to $780 at the beginning of 2018 before tipping over the edge into the 2018 bear market. At the time of writing, ZEC is trading for $84 — making for a total of nearly 90 percent of its total market cap lost in the past 11 months. This past week, the cryptocurrency exchange goliath Coinbase unexpectedly announced that ZEC would be the next to be added to its platform. This news caused a rapid buying spike which, in turn, caused the price to rise 21 percent to $97. This glory was short-lived, however, as those who bought early on have already sold off to take profits. This same pattern can be seen with the three cryptocurrencies listed on Coinbase before ZEC — Basic Attention Token (BAT), 0x (ZRX) and Ethereum Classic (ETC).
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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