Hark, ZEC bulls, this is why a move towards $66 could come soon

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

The Tether Dominance scale has been on an upward trend over the past few days. This came on the heels of a strong sell-off across the cryptocurrency market, with participants fleeing to stablecoins.

Zcash moved with many other altcoins losing 13.15% in less than five days. However, the technical analysis showed that a buying opportunity with a clear invalidation of the downside was imminent. Can the bulls bring prices back to $66?

ZEC – 12 hour chart

Source: ZEC / USDT on TradingView

The Fibonacci retracement levels (in yellow) were plotted based on the ZEC rally from $50 to $82.8. The tool showed that the 78.6% retracement level of this move was at $57, which is very close to the horizontal support at $58. Moreover, these two levels have been respected in recent weeks as solid support.

In late June, the $53-$58 area (highlighted in cyan) developed into a bullish order block. It was an area where buyers were able to force good rallies.

Over the next week or so, history may repeat itself. OBV has also been in an uptrend since June, which means buying volume has been stable and consistently stronger than selling pressures.

On the other hand, frequent testing of the support level weakens it. A close of the daily session below $58 is likely to bring the ZEC down to $55 and $53, where another buying opportunity may emerge.

The momentum remains with the sellers, as the RSI was unable to rise above the 50 mark and stay above it. An upward reversal would be a drop below $52.9.

ZEC – 2 hour chart

Zcash is in an attractive support zone again, but the bulls should be aware...

Source: ZEC / USDT on TradingView

The 2-hour chart has highlighted the lack of a strong trend for the past three weeks. The $66.7 area, which is again highlighted in cyan, was a bearish order block from late August. Additionally, the same area has been tested twice since then as a resistance band.

ZEC has fluctuated between $66.2 and $57.4 since the end of August. This may remain unchanged. OBV is also stuck inside a range to enhance the perception of the balance between buying and selling volume.

However, the cool oscillator showed a bullish divergence. The RSI and AO are both showing bearish momentum. When the price moves towards the support level, the momentum can start to reverse.

conclusion

Selling pressure behind bitcoin has been strong in recent weeks, and it could stay that way until the end of the week. Therefore, any long positions on Zcash can be risky. Ethereum also fell below $1,500, and fear in the market could lead to more losses.

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