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On August 10, 2019, theprice reached a low of 490,000 satoshis. An upward move followed, and ZEC reached a high of 511,200 satoshis on August 14. It has been decreasing since — most notably reaching lows 486,500 satoshis of on August 16.
Will the ZEC price continue to decrease or is there a reversal waiting to be initiated? Continue reading if you are interested in finding out.
For our previous analysis, click here.
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A look at the weekly time-frame shows that Zcash is trading at an all-time low price.
It first made an all-time low in December of 2018 and has been decreasing since.
The fact that there are no support areas left to provide a reversal makes it difficult to predict the bottom.
In order to do that, we will use a Fibonacci retracement tool on the most recent upward move from May 13 to May 17.
Doing that gives us a target of 500,000 satoshis for the subsequent low.
The next target for the Zcash price is found near 210,000 satoshis.
Since that one is quite far away, we are going to check for possible signs of reversal at the current level, which is very close to the first target.
The first such sign is given by the RSI.
It has been developing bullish divergence since August 10.
The divergence is significant and is present in long-term time-frames such as the daily.
Additionally, we can see below that the MACD has made a bullish cross.
However, the Zcash price is still trading below the 10- and 20-day moving averages (MA).
During the time the bullish cross occurred in the MACD, the price made an unsuccessful attempt at breaking out above the 10-day MA.
This is a sign that the ZEC price is attempting to begin an upward move.
If it does, one resistance area is outlined below.
It is found at 513,000 satoshis.
We believe it is likely that the price will reach it.
The ZEC price is trading at an all-time low.
According to our analysis, it is likely to begin an upward move and reach the resistance area outlined above.
Do you think ZEC will reach the resistance area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, Trading
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