ZCash bounced ever so slightly on Friday as we are hanging around the 200-day EMA. At this point, the market looks as if it is attracting a lot of attention, and the 200-day EMA is quite often used as a trend indicator.
ZCash will follow the rest of the crypto markets, but right now it seems as if we are trying to figure out where to go for a bigger move. ZCash is most certainly out there on the risk spectrum, so you need to keep an eye on where risk appetite is in general. The more likely people are to take a risk, the more likely they are to put money into ZCash. The market is not only sitting above the 200-day EMA, but it is also sitting just below the 50-day EMA. That is an area that typically causes a bit of a squeeze, so I do anticipate that it is only a matter of time before we see inertia pick back up.
Looking at this chart, if we were to break down below the $145 level, we may have a little bit of acceleration to the downside afterward. At this point, the market would possibly even go looking to the $120 level, possibly even the $100 level. Keep in mind that ZCash needs a little bit of help from the rest of the crypto markets in order to rally, specifically the bigger coins such as Ethereum and Bitcoin. If they start to rise, then you have the ability for ZCash and other smaller markets like it to show signs of life. Right now, we do not necessarily have that external pressure.
When you look at the trading over the last couple of sessions, the most important candlestick would be the massive selloff that got the market down to the 200-day EMA. If we were to turn around and take that out to the upside, it is likely that the market would go looking toward the $200 level, perhaps even the $220 level. Breaking above that level would then open up the possibility of a move to the $300 level longer-term. That would be in a situation where crypto continues to take off in general. Ultimately, this is a market that is sitting in an area that should launch the market in one direction or the other.
