On Apr 3, 2019, the price of Zcash (ZEC) reached a high of $78 and €69. A sharp decrease was followed by a gradual increase. The price reached similar levels on Apr 8.
A gradual downtrend ensued. The price has been decreasing since.
Will price losses continue for Zcash or can we expect a reversal soon?
Let’s find out.
Zcash (ZEC): Trends and Highlights for Apr 23, 2019
- ZEC/USD and ZEC/EUR have been on a gradual downtrend since Apr 3.
- It is trading inside a descending channel.
- The moving averages have made a bearish cross.
- There is support near $62 and €55.
Current Trading Pattern
The price made a low of $65.32 on Apr 4. A gradual upward move followed. Several market cycles have been completed since and the price has reached lower lows each time.
Tracing these lows gives us a descending support line:
On Apr 3, the price reached a high of $78.00. A sharp drop was followed by a gradual increase. The price has made successively lower highs.
Tracing these highs gives us a descending resistance line. The resistance and support lines combine to create a descending channel:
It is likely that the price will keep trading within the confines of this channel until a decisive move occurs.
In order to figure out the direction of the move, we need to take a look at a longer time-frame combined with technical indicators.
What Do the Technical Indicators Say?
On Apr 21, the 10-day MA crossed below the 20-day MA. This is known as a bearish cross and often indicates that the price has begun a downtrend.
The use of this indicator suggests that the price will continue to decrease at the rate predicted by the channel.
In order to figure out when it will begin a reversal, we need to incorporate support areas.
The closest support area is found near $62 and €54. We believe that the price will reach this area.
Summary of Analysis
Based on this analysis, the price will likely keep decreasing at the rate predicted by the channel. We believe it will eventually reach the support area outlined above. Prices within the lower $60s and €50s seem possible.
Do you think the price of ZEC will reach the support area? Let us know in the comments below.
If you’d like to read the long-term price predictions of Zcash, click on the green button 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.