What is more likely is that we revisit the $85 level, and perhaps try to form some type of “double bottom”.
ZCash has rallied ever so slightly during the trading session on Wednesday as we continue to pay close attention to the $100 level. That being said, the market is more likely than not to continue going lower over the longer term, as we have seen Bitcoin give back gains during the day. With smaller coins such as ZCash being especially vulnerable to the overall attitude of the crypto markets, I think that it is likely we go looking towards the lows again at the $85 level.
In the short term, it is probably worth noting that the crypto markets are suffering at the hands of tightening monetary policy, so when it comes to Bitcoin struggling to gain, it is difficult to imagine a scenario where ZCash will break above the 50 day EMA that is currently sloping lower at the $127.21 level. In fact, it is very likely that the 50 day EMA continues to be a bit of a barrier that is going to be difficult to break above, but if we did then the next target would be the 200 day EMA. What is more likely is that we revisit the $85 level, and perhaps try to form some type of “double bottom”.
If we were to break down below the $85 level, then it is likely that the ZCash market will go looking towards the $75 level initially, and then perhaps down to the $50 level. As far as some type of bigger move to the upside, it seems difficult, and I would recognize that the $150 level above is going to be a massive barrier to overcome. If we can finally break above there, then it is likely that ZCash will become more of a “buy-and-hold” type of situation, perhaps allowing the market to go looking towards the $300 level.
I think the best thing you can hope for is a little bit of stabilization below with $85 level, as it should give you an opportunity to perhaps consolidate and build up a little bit of an accumulation in the process. I think at this point in time crypto is either going to go sideways in general, or we are about to see a massive breakdown where we may go back into a “crypto winter”, which of course would be toxic for some of the smaller markets.
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