Zcash (ZEC) had been challenging the $250 resistance level since the last week of February. It had a brief breakout to reach $290 on March 16, but was unable to maintain this trend.
The crypto market saw increased selling in the second half of February, which led to ZEC falling back below the $250 level.
In an article on This also represented a break from the triangular configuration.
At the time of writing, the longer-term price structure was firmly bullish. The weekly chart showed that despite the deep retracement from $750 to $187, the swing structure remained favorable for buyers.
Additionally, the pullback ended at the 78.6% Fibonacci retracement level, with the price bouncing once again.
The CMF was below -0.05, showing significant capital flows out of the market during this period and the MACD also did not signal any bullish momentum on the weekly chart. If the press time rally continues, the higher time frame technical indicators will be forced to move bullish.
Trader Call to Action – Buy
Long-term investors and swing traders would have had a good sign of the market’s bullish intent from its defense of the $187 level and subsequent rebound.
The 1-day chart showed $404 as the highest to cross to confirm that the long-term uptrend can continue.
Technical indicators were much more positive on the daily time frame, and it seemed likely that ZEC bulls would manage to make new highs in the days and weeks to come.
The $750 high can reasonably be targeted, although a market-wide sell-off could affect ZEC trends and force a pullback. If such a crash were to occur, Zcash would likely be one of the fastest recovering mid-sized altcoins, making it an interesting bullish candidate.
Final summary
- The compelling rally past the $250 resistance zone follows weeks of consolidation below this local resistance.
- The longer-term market structure was bullish, and the defense of $187 and subsequent rally confirmed that ZEC would reach new local highs.
