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On September 6, the ZEC price reached a low of 417,300 satoshis. An upward move followed, and on September 8 ZEC reached a high of 465,499. It has been decreasing since.
At the time of writing, ZEC was trading close to 426,000 satoshis.
Will the downward move continue for ZEC or will the price initiate a reversal? Continue reading below if you are interested in finding out.
For our previous analysis, click here.
A look at the weekly logarithmic chart shows that ZEC has been trading at an all-time low for a significant period of time.
It first did so on September 18 and has continued its downward move since.
Since there are no support areas left, it is hard to predict where the price will make a bottom.
However, we will try to do that in the following sections.
A look at the weekly candlesticks does not show any reversal signs.
11 of the last 13 weekly candlesticks have been bearish.
While last week the price showed some signs of reversal by creating a bullish hammer, this week’s bearish engulfing candle invalidated the possibility of a reversal.
In order to try and predict a bottom, we used a Fibonacci retracement tool in the upward move from May to June 2019.
The first level suitable for the beginning of a reversal was found at 500,000 satoshis.
The price hovered around this area in August before ultimately breaking down.
The next significant support level is found at 200,000 satoshis.
A look at the weekly RSI and MACD shows that the price has been showing strong signs of a reversal.
Both the RSI & MACD have been generating bullish divergence since the beginning of August.
While the divergence is very significant, the fact that the price is in a free fall and is not close to any support areas makes us less confident that a reversal will occur.
If the divergence was present when the price was close to the support level at 200,000 satoshis, it would likely indicate that a reversal will occur.
The ZEC price is trading at an all-time low.
While it has been showing some signs of a reversal, we are not confident that the price will initiate one.
For hypothetical trading purposes, we see some value in initiating buy and hold positions, the lack of a trading structure makes it hard to initiate a trade.
At what level do you think Zcash will begin an upward move? 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.
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