- Short-term analysis clearly shows a bullish falling wedge pattern
- ZEC / USD pair trades below the neckline of a bearish head and shoulders pattern on the daily time frame
- $53.60 level is currently capping rallies while the $64.00 level offering bulls a solid upside target in the short-term
ZEC / USD Short-term price analysis
In the short-term, Zcash appears bearish, although the ZEC / USD pair could soon rally, if we see a technical breakout above the well-flagged falling wedge pattern.
Sustained moves above the wedge should be watched closely, as an immediate rally towards the $64.00 level could start to take shape, given the size of the bullish pattern.
Overall, caution is advised for short-term bulls as price trades below the ZCASH’s 50-day and 200-day moving averages on the reliable four-hour time horizon.
The previously mentioned falling wedge pattern can be seen across various time frames, and offers a great trading opportunity in the short-term if a break higher occurs.
Key Moving Averages
The 50 period moving average is currently merging with the upper trendline on the four-hour chart, a sustained break above the 50-period moving average should offer a reliable gauge of the short-term strength.
The MACD indicator is trading in positive territory. If a strong bullish move were to occur, the MACD indicator could move into extremely oversold territory beforehand.
ZEC / USD Medium-term price analysis
In the medium-term, Zcash is technically bearish with the price trading well below the pair’s 200-day moving average, and, crucially, the large head and shoulders pattern on the daily chart.
Given that Zcash has staged very few meaningful rallies since breaking below the neckline of the mentioned bearish pattern, a corrective move back towards the $80.00 level cannot be entirely discounted at this stage.
Any sizeable moves higher would likely offer bears an opportunity to enter back into the prevailing downtrend.
Pattern Watch + RSI
The potential bearish head and shoulder pattern is striking on the daily chart; we can also observe two failed attempts at the neckline last year after the price broke to the downside.
Despite remaining under heavy selling pressure, the Relative Strength Index on the daily time frame has yet to trade into extreme oversold conditions.
Moving Averages + Volume
Zcash’s 50-day moving average is located around the $58.00 level and is a key level to watch over the medium-term. It is also worth noting that the ZEC / USD pair’s rally during May 2017 began close to the $115.00 level, which currently coincides with its 200-day moving average.