ZCash did very little on Monday, although it is worth noting that things were generally positive. We have seen a little bit of upward momentum in some of the bigger markets, so crypto seems to be getting a bit of a breather. The market for ZCash continues to hang just above the $100 level, so there is a little bit of psychology involved in this general vicinity. However, it should be noted that the ZCash market is pretty far out on the risk spectrum, and that is one of the things that I have been paying the most attention to.
If the $100 level is broken to the downside could open up the possibility of a move down to the $85 level. The $85 level is a scenario where we have seen quite a bit of noise, as it was previous support. The previous support should now offer significant resistance in that scenario, so I do think that if we break down below the $85 level, the ZCash market will almost certainly unwind quite drastically. Keep in mind that we are still very much in a downtrend, and we are operating under the so-called “death cross.” With this being the case, the market is likely to see plenty of sellers on any rally anyway. The $120 level is a major resistance barrier, and I think it is going to be difficult to break above there. In other words, I think that if you get a bit of a rally, you can probably be a seller.
Selling the rally will most certainly be the best way to approach this market, and if you take a look at the larger market such as Bitcoin, that can give you a bit of a “heads up” as to where we are going to see smaller coins such as ZCash go over the longer term. In general, I think that exhaustion is the key, backed up by larger coins rolling over. Although both Bitcoin and Ethereum have rallied during the day, they are bouncing from extreme lows, a sign that we are just seeing an oversold rally. I think that is the same thing that is going on in ZCash, as well as all other crypto markets that I follow. Keep in mind that the US dollar is strong in general, and that should continue to be an issue.
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