ZCash rockets beyond $500 despite warning signs… What now?
Key Takeaways
Is it harmful to purchase ZCash at these elevated ranges?
It may be extraordinarily harmful if purchased on margin, and could possibly be worthwhile if the worth reaches the $591 and $726 targets-traders ought to handle the dangers and have a transparent invalidation for his or her buys.
Is there a catch to the present ZCash rally?
Merchants and buyers ought to do not forget that, narrative apart, ZEC has not essentially modified — but it’s up 1,218% since early August. As an alternative of shopping for extra, it is likely to be wiser to take income.
ZCash [ZEC] smashed apart the $500 psychological resistance on Thursday, the sixth of November.
On Wednesday, a day earlier, the bulls managed to drive costs to $501, however had been pressured to retreat to $468. This retreat was as temporary because it was shallow.
With excessive buying and selling quantity and 6 consecutive inexperienced days, and after outperforming a lot of the market in October, ZCash buyers should be euphoric.
Technical indicators reached overbought ranges by no means earlier than seen within the historical past of ZEC’s buying and selling.
Overbought indicators didn’t matter when ZCash’s worth had quadrupled inside a month again within the first week of October, and it may not matter now.
How a lot increased can ZCash go?
Supply: ZEC/USDT on TradingView
In an AMBCrypto report final week, we reported how a rally to $726 is feasible. That hasn’t modified, with current worth motion vindicating the expectation of a rally previous $400.
The weekly chart confirmed simply how shortly features can come as soon as key ranges are breached.
Sure, the MFI was at 99.59, the best weekly studying ZEC has ever seen. Whereas this may result in a pullback, it isn’t a direct “promote” sign for merchants and buyers ought to.
As an alternative, taking income degree by degree for merchants can be a smart route. The following ranges to look at are the 61.8% and 100% Fibonacci extension ranges at $591.6 and $726.9.
Supply: ZEC/USDT on TradingView
On the 4-hour chart, a bearish divergence between MFI and worth was seen. Nevertheless, we additionally see the shifting averages being revered as dynamic help.
Merchants shouldn’t rush to go brief due to a divergence, and might search for a pullback to the shifting averages to evaluate shopping for alternatives.
Nevertheless, merchants and buyers should keep in mind one essential factor. In a post on X, dealer Credibull Crypto famous how nothing basic has modified for ZEC from the previous six months.
An explosive narrative constructed up in September, and is propelling costs increased.
This narrative may not final endlessly – so e-book income when you can, and benefit from the experience.
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
