At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 23 analysis of ZcashBUY NOW (ZEC), we predicted price decreases. Our prediction was partly validated on Apr 24 when the price broke down from the pattern we defined. However, it has yet to reach the support area. To learn more, read our latest ZEC/USD($) and ZEC/EUR(€) below:
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
We analyze the price of ZEC on Binance at two-hour intervals from Apr 3 to Apr 25 in order to trace the current trading pattern. We do not include euros in this section because only one trading pair is needed to generate the current trading pattern. Both ZEC/USD and ZEC/EUR are discussed in the final two sections.
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?
In this section, the price of ZEC/USD is analyzed at one-day intervals from Apr 1 to Apr 23 alongside the 10- and 20-day moving averages (MA).
Moving averages are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between price and moving averages can help in identifying resistance and support areas]
They are traced below:
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.
To determine possible future price levels we incorporate support areas into the analysis.
Support areas are created when the price reaches the same level several times. They can provide likely reversal areas in case a breakdown occurs.
One possible support area is shown for both ZEC/USD and ZEC/EUR below:
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.
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