Zcash (ZEC) Aims For $100 August Highs and Beyond

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In Brief
  • ZEC has broken out from a descending resistance line.

  • There is resistance at $102 and $120.

  • The price is likely in wave 3 of a five-wave bullish impulse.

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The Zcash (ZEC) price has broken out from a descending resistance line and increased considerably throughout November.

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ZEC is expected to continue its ascent towards the resistance levels outlined below.

 

ZEC Breaks Out

The ZEC price has been increasing since Nov. 3, when it reached a low of $51.69.

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Shortly afterward, the price broke out from a descending resistance line that had been in place since Aug. 5, validated it as support, and has been increasing at an accelerated rate since.

The price has already broken out from the $72 resistance area and has even moved above the 0.618 Fib resistance level at $82.80. The next closest resistance area is found at $102.40.

Technical indicators in the daily time-frame are bullish, supporting continuation toward $102.40.

ZEC Chart By TradingView

Cryptocurrency trader @CryptoNewton outlined a ZEC chart compared to XRP.

Newton predicted a 100% price increase that could take ZEC to $160.

Source: Twitter

However, a look at the weekly chart shows a very strong resistance level at $120. At the current time, we cannot confidently predict a breakout above this level.

ZEC Chart By TradingView

Future Movement

The shorter-term 6-hour chart shows that the price has broken out from a parallel ascending channel and validated its resistance line afterward (shown with the green arrow). This movement also served to validate the $76 area as support.

Breakouts from parallel channels often indicate that the price has begun a bullish impulse.

As long as ZEC is trading above the resistance line of the channel and the $76 area, it is expected to continue moving upwards.

ZEC Chart By TradingView

The 2-hour chart shows the first signs of weakness since both the RSI and MACD are decreasing. However, the price is also following two ascending support lines (dashed and solid in the chart below). 

The most likely move would be a re-test of at least one of these lines followed by a rally.

A decrease below the $76 area would mean that the trend is bearish, but that does not seem likely at this time.

ZEC Chart By TradingView

Wave Count

The ZEC wave count since the Sept. 21 low suggests that the price is in wave 3 of a five-wave bullish impulse (shown in black below).

Inside wave 3, the price is also likely in the third sub-wave (blue).

There are two possible targets for the top of wave 3:

  • The $102-$104 area, created by the previously mentioned horizontal resistance level and the 3.61 Fib extension of sub-wave 3 (blue).
  • The $115-118 area, created by the 2.61 Fib extension of wave 1 (black) and the 4.61 Fib extension of sub-wave 1 (blue).

After waves 3 and 4 are complete, ZEC is expected to complete another final upward move.

ZEC Chart By TradingView

Conclusion

The ZEC price is expected to continue its upward move, reach the $104 resistance area, and possibly break out.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

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.
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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.

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