Zcash (ZEC) has been challenging the $250 resistance level since the last week of February. It saw a brief breakout to $290 on March 16, but was unable to sustain the move.
The cryptocurrency market saw a sell-off in the second half of February, sending ZEC below the $250 level again.
In a post on It also represents a breakout of the triangle pattern.
At the time of writing, the upper time frame price structure is strongly bullish. The weekly chart showed that despite the deep bounce from $750 to $187, the swing structure remained favorable for buyers.
Moreover, the pullback ended at the 78.6% Fibonacci retracement level, with the price rising again.
The CMF was below -0.05 showing heavy capital outflow from the market during this time frame and the MACD was not indicating upward momentum on the weekly chart either. If the rally continues at the time of publication, the higher time frame technical indicators will be forced to turn higher.
Traders call to action – buy
Long-term investors and swing traders would have gotten a good signal of the market’s bullish intent from its defense of the $187 level and subsequent bounce.
The 1-day chart shows that $404 is the highest level that needs to be broken to confirm that the long-term uptrend can continue.
Technical indicators have been more positive on the daily time frame, and it seems likely that ZEC bulls will succeed in making new highs in the coming days and weeks.
The high at $750 could be reasonably targeted, although a market-wide sell-off could take a toll ZEC trends And force a retreat. Should such a collapse occur, Zcash would likely be one of the fastest mid-cap altcoins to recover, making it an interesting bullish candidate.
Final summary
- The convincing rally came after the $250 resistance area after weeks of consolidation under this local resistance.
- The higher time frame market structure was bullish, and the defense of the $187 level and subsequent rally confirmed that ZEC would make new local highs.
