The privacy coin Zcash (ZEC), once a star performer of the cryptoasset industry, has had a very tough year in terms of market performance. In fact, since before even 2019, ZEC has been in a pitiless downtrend trading against Bitcoin that has hardly taken a break from falling. But now, after the release of an Ethereum Improvement Proposal (EIP) a couple of days ago outlining the technicals of a potential Zcash-Ethereum integration, ZEC has received a small price bump.
Starting on a daily ZEC/BTC chart, we see that the news coincided with an abrupt surge, which put paid to a developing medium-term downtrend that was forming (especially on the histogram). This pushed ZEC through the support that it had just lost, and into contact with the 55 EMA for the first time since September; and before that, June.
If we see Zcash hold above the 21 EMA on the daily, we could then eventually see another attempt at the 55. Volume on the surge – Kraken exchange – was curiously small, however, suggesting a docile market that is easily moved by concentrated buying (or heavy buying on a USD pairing: See below).
Expanding to the daily USD(T) pairing on Binance, we get a pretty interesting picture of potentially growing strength. First and foremost, we see a rapidly building volume profile against USDT, starting in late September, as the price decline flattened out.
We also see a recent double bottom on the daily with bullish RSI divergence. This is promising – although we can also note the same pattern that occurred between September-October, with a price surge getting stopped at the 55 EMA. Now, the 21 EMA is confluent with the resistance formed during autumn lows.
Finally, on the 3-day chart, we get a sense of just how deep ZEC has dropped. $35 is the critical level on this chart, and if ZEC can get above it we might start to imagine a bottom put in.
The histogram on this chart is trending up in positive territory, but seems to be arching down. However, this candle just opened today and doesn’t close until the 9th, so it is too early to call it.
Zcash seems interesting, with the recent news associated with Ethereum (with Ethereum already in the headlines because of its hard fork this weekend) perhaps having caused a bit of energy in its market. We should keep an eye on this coin for further signs of reversal.
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