It is not really an exaggeration to say that ZCash (ZEC), the once more-popular privacy altcoin, has been downtrending for about two and a half years. We can see this on the altcoin’s Bitcoin-paired charts. But since January 1, 2020, the privacy altcoin has been on a shocking tear, climbing 150% at time of writing.
We first look at a monthly ZEC/Bitcoin chart, and there is little commentary required. ZEC, despite being a once-popular altcoin (less so now), has been on a multi-year downtrend, unable to get anywhere near the moving averages.
But now, ZCash has taken the 8 EMA on this chart, and if it holds out for just two more days it will close above it for the first time – on many charts – ever.
Moving to the dollar chart, we see ZEC has engaged the 55-week EMA, after already retaking an important 2019 inflection zone just under $50. ZEC has not had a staying presence above the 55 for a very long time (March 2018), so holding this average for any length of time would be a major shift.
On the histogram here, we see an accelerating bullish contraction on the histogram. The profile of this acceleration is intense, and we may see the shape soften before the week has closed, as it is hard to maintain such an intense uptrending momentum.
Finally, on a 2-day chart, we see clearly overbought RSI levels. Price is likely to come down a bit soon, at the least, and consolidate – although it doesn’t have to return to the green area for too long in a blistering uptrend such as this. This histogram has notably sliced its way through a gentle, mostly flat downtrending profile; it will be interesting if the candle closes with this profile.
This rise has come on the back of a steady series RSI bull divergence. Plenty of ZEC’s rise here is due to Bitcoin, which has also been on a tear during January. But it isn’t all Bitcoin; and altcoins are themselves on the rise in line with a falling Bitcoin dominance.
We should watch the weekly and monthly charts, as they might start to telegraph big things for this privacy coin soon.
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