ZCash has fallen initially during the trading session on Thursday to reach the $159.50 level before turning around and forming a bit of a hammer. The hammer is preceded by a neutral candlestick, which was preceded by a pullback. At this point, the market looks as if it is trying to recover after a short-term pullback, which is especially interesting as we had broken higher for a couple of months. This pullback has been healthy, and it looks as if ZCash is ready to turn things around.
The 50 Day EMA and the 200 Day EMA both sit below and offer a certain amount of support. We had recently formed the so-called “golden cross”, which of course is something that longer-term traders will pay attention to for bullish pressure. This market looks as if it is trying to recover right along with the rest of crypto, as it has followed Bitcoin. Bitcoin leads the rest of them, and as Bitcoin is recovering, we have seen several altcoins follow right along, including this one.
If the risk appetite in markets continues to increase, it can help the idea of these smaller crypto markets rally. That being said, if we do get some type of major “risk-off” type of situation, then it is possible that the ZCash market will fall right along with the rest of them. If we break down below the moving averages below, then it would be a very negative turn of events and could open up the possibility of ZCash dropping to the $120 level.
On the upside, the target at this point would be to revisit the $200 level, an area that has a lot of psychological importance, and an area that has pushed ZCash back down from there, suggesting that perhaps the market will try to break through that resistance barrier. There is a shooting star that formed right at that level about two weeks ago, and if we can break above the top of that level, it is likely that the ZCash market will go looking to reach the $250 level. All things being equal, the only thing that will matter is that there is a lot of volatility, so you need to be very cautious about your position size, and then you need to pay attention to the overall attitude of crypto and the US dollar.