The ZCash market rallied during the trading session on Tuesday to clear the 50 Day EMA and show signs of bullish pressure. The $160 level is an area that will attract a certain amount of attention, but piercing it during the Tuesday session, it does suggest that we have further to go. If we can break above the top of the candlestick for the trading session on Tuesday, then it is possible that ZCash goes to reach the $172 level, which is where we had sold off quite drastically previously.
ZCash will need the rest of the crypto markets to rally in order to continue going higher, and that is exactly what we have had happened during the day. The 50 Day EMA is potentially a support level, followed by the 200 Day EMA which is just underneath the $145 level. That zone between the two EMA indicators will continue to offer a little bit of support as that is typically an area where we see volatility and a squeeze higher or lower.
On the upside, the market could go looking to the $210 level, where we had sent the market to reach during the last major run higher. If we can break above there, the market will more likely than not go much higher, perhaps reaching as high as $300 over the long term. On the downside, if we were to turn around a breakdown below the hammer from the Monday session, that would obviously be a very negative turn of events and could open up a move down to the $120 level. Anything below there opens up the possibility of dropping all the way down to the $85 level, where we had formed a major “double bottom” previously to turn things back around.
ZCash of course is pretty far out on the risk spectrum, so make sure that Bitcoin and Ethereum are starting to recover before you put money into this market. Furthermore, if you start to see Bitcoin or Ethereum break down significantly, it is very likely that the ZCash market will do the same thing, perhaps even quicker than those two. It is worth noting that the 200 Day EMA has offered support, and therefore it is likely that we would see buyers coming into that area, and it is a good sign from the longer-term perspective.
