ZCash (ZEC) rose 5% in the past 24 hours as its daily trading volume jumped 56%, according to data from CoinMarketCap. These rapid gains were accompanied by increased speculative interest.
Open interest jumped 10% in a day and the altcoin was targeting the $400 resistance zone after its rebound from $300 two weeks ago.
AMBCrypto had reported earlier in April that the long-term price structure was bullish. In the coming days, ZCash bulls may succeed in reversing the $400 resistance level towards support.
ZEC working below short-term trendline resistance
ZCash’s swing structure was bullish. As previously reported, $187 was the 78.6% Fibonacci retracement level. Recently, the $308 area, which corresponds to the 61.8% retracement level, also served as a demand zone.
This means that the ZEC bias can be safely bullish. A price decline below $207.88, the low set near the end of March, is necessary to reverse the swing structure bearishly.
This outcome does not seem likely in the coming weeks. The RSI on the daily timeframe remained above the neutral 50 to signal bullish momentum, and the OBV made a significant bullish move in April.
Despite the positive reaction to $300, trading volume has slowed significantly over the past week. Combined with local trendline resistance, this presented an obstacle that required a greater influx of capital to combat it.
Traders’ Call to Action – Stay Optimistic but Prepare to Take Profits
The 4-hour chart above highlights the possibility of a range forming between $301 and $368. Local highs set in the $370-$390 area in mid-April represented a severe supply zone that could take some time to crack.
The longer time frames suggest that the current uptrend is likely to continue. At the same time, the dense group of short liquidations ranging from $370 to $390 constituted an important magnetic zone that could pull ZEC higher before a rejection towards $300.
Therefore, traders may consider taking advantage of this supply pocket to make profits. A takedown would signal a range formation in play.
On the other hand, a break beyond $390 and a retest of this level as support would provide a buying opportunity.
Final Summary
- ZCash has a long-term bullish outlook, but saw a slowdown in trading volume over the past week as it faced trendline resistance.
- Short-term liquidation overhead meant ZEC’s immediate price target was $370-$390.
