Is Zcash on Course for a Bearish Breakdown? (ZEC/USD and ZEC/EUR Price Analysis for 04/23/19)

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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 triangle.
• Bearish divergence is developing in the RSI.
• Zcash is resistance from the 200-day moving average.
• There is support near $60 and €52.

The 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 the same level three times. Tracing these lows gives us a horizontal support line: On Apr 3, the price reached a high of $78.0. 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 triangle, which is a bearish pattern, making price decreases more likely. It is likely that the price will keep trading within the confines of this triangle 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 2, the price reached a high of $72.24. It reached another high of $76.99 on Apr 7. Similarly, the RSI reached a high on Apr 2. However, it has proceeded to generate lower values. This is known as bearish divergence and often precedes price decreases. Furthermore, we can see that the price has unsuccessfully attempted to break out above and is facing very close resistance from the 200-day moving average. The use of this indicator suggests that price may drop and possibly break down from the triangle.

Finding Support

The closest support area is found near $60 and €52. If the price breaks down from the triangle, it is likely to reach this area.

Summary of Analysis

Based on this analysis, the price will likely trade inside the confines of the descending triangle and eventually break down. It is likely it will move toward the support area outlined above and possibly reach $60 and €52. Do you think the price of ZEC will break down from the triangle? 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.