Zcash Leverage Pattern Points to a Delayed Upmove — $404 Is Now the Line to Watch?
Key Takeaways
- Zcash price has pulled back 11% over the past week and 43% over the past month after a strong multi-month rally.
- The recent trend has turned cautious, raising questions about the token’s next move.
- A leverage pattern analysis suggests a delayed upmove, with $404 being the key level to watch.
Zcash Price Rally Hits a Speed Bump
Zcash (ZEC) has been one of the top-performing cryptocurrencies in recent months, with a staggering 650% gain in the three-month timeframe. However, the token’s price has cooled down in recent weeks, sparking concerns about the sustainability of the rally.
Over the past seven days, ZEC has lost approximately 11% of its value, while the monthly chart shows a more substantial decline of 43%. This pullback has raised a simple question: is the Zcash price rally over, or is this just a minor correction before another leg up?
Leverage Pattern Analysis
To answer this question, we can turn to leverage pattern analysis. This method involves examining the relationship between the price of an asset and the amount of leverage used by traders. By analyzing this relationship, we can identify potential areas of support and resistance.
In the case of Zcash, the leverage pattern suggests a delayed upmove. The recent pullback has pushed the price below the 50-day moving average, which is now acting as resistance. However, the 200-day moving average remains intact, providing a crucial support level.
$404: The Line to Watch
So, what’s next for Zcash? The key level to watch is $404, which represents the 61.8% Fibonacci retracement of the recent rally. If the price can break above this level, it could trigger a renewed upmove, potentially targeting the $600-$700 range.
On the other hand, a failure to overcome the $404 resistance could lead to further consolidation or even a deeper correction. Therefore, traders and investors should keep a close eye on this level and adjust their strategies accordingly.
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