ZCash breaks above $560, but $644 remains the level to beat
Traders can wait for sustained capital inflows and a move past the local swing high to confirm the bullish turnaround.
ZCash [ZEC] rallied 13.85% on Tuesday, July 14. It was up another 1.6% on Wednesday, and its Open Interest has increased by 7.70% in the past 24 hours.
In a recent report, AMBCrypto concluded that swing traders and investors can adopt a cautiously bullish outlook. The $560 level was marked as a key short-term resistance, but it has been breached.
There is yet another hurdle to watch out for, but for now, two out of three key resistances have been reclaimed. These are the round-number $500 supply zone and $560 retracement level.
In other news, there was unusual trading activity towards the end of May, when the critical vulnerability on Orchard was discovered that enabled printing unlimited ZCash.
ZCash resurgence is well underway
The $176 retracement was respected earlier in the year, a rebound has commenced. The critical vulnerability triggered a deep sell-off, but since early June, the $500 local supply zone has been reclaimed once again.
The CMF on the 3-day chart remained above +0.05 to signal strong buying pressure. The RSI was at 60.6 to indicate the upward momentum was also considerable.
ZCash has made 56.12% in gains in under three weeks, measured from the local low at $368.3. As things stand, further upside remained likely.
Traders’ call to action- Buy
The swing structure on the 4-hour chart was bearish, but the 78.6% retracement level at $560.11 has been breached. It was a slight concern that the CMF was at -0.02 and did not show firm buying pressure.
A price move beyond $644 would flip the ZEC H4 structure bullishly. The next target would be $690, a high made in May, with $750 another bullish target.
Traders can wait for sustained capital inflows and a move past $644 to confirm the bullish turnaround.
Final Summary
- The ZCash breakout past the $500 supply zone was accompanied by buying pressure on the higher timeframes.
- Zooming in, the lower timeframe charts showcased some doubt around ZEC bulls’ ability to keep the recovery going.
