Zcash decouples from market chaos: ZEC bulls eye $600 local high next
The $500 level is the line in the sand that ZEC needs to stay above to keep its bullish momentum going.
Zcash [ZEC] has rebounded from the $500 round-number support and rallied 14.9% in three days, from $386 to $559 at the time of writing. In the past 24 hours, it has gained 7.85%.
The Open Interest surged 18.3% in a day, and the OI was nearing the $958 million high from earlier in May. The rebound in prices and OI showed speculators were betting on continued short-term momentum upward.
Here’s what the price trends and liquidation clusters have to say about these bullish expectations.
ZCash is in a position of strength
On the 9th of April, ZEC climbed past the $333 local high, flipping its price structure bullishly. The Fibonacci retracement levels (yellow) show that the weekly structure was bullish.
The rally in April came after ZEC tested the 78.6% retracement level at $187 during the February crash.
The higher timeframe bullish swing structure, a positive reaction at a key retracement level, and a bullish structural shift on a lower timeframe (the daily here) all point toward one thing.
The bulls are in control. The wider market chaos and fears of inflation can negatively affect Bitcoin [BTC] and ZEC in turn. As things stand, investors have reason to stay positive.
Holders can use a move to the $750 and $918 to take profits while keeping an eye on BTC trends.
Traders’ call to action- Watch out for the $600 barrier
The 1-month liquidation heatmap highlighted the $600 region as a magnetic zone with sizeable short liquidations. The $480 region was another area that ZEC could sweep in the coming days.
Given the Zcash trend and the Bitcoin bullish structure (at least price-wise), it is more probable that the price would test the liquidity around $600 and continue its upward momentum.
Final Summary
- Zcash saw its upward momentum stall around $600 last week, but the current pullback could be part of a short-term range, with its lows at $500.
- The higher timeframe ZEC trend was bullish, and its recent momentum meant a move beyond $600 was more likely than a retracement below $500 later in May.
