As the premise line (inexperienced) of the Bollinger Bands (BB) constricted the revival makes an attempt for almost seven weeks, Zcash [ZEC] bears pulled the altcoin all the way down to yearly lows final week. The foundation line has crippled the consumers’ capability to maintain an in depth close to the higher band of the BB.
With the present rising wedge setup being strong, a restoration towards the $113-level may see a slowdown. At press time, ZEC traded at $103.9, down by 2.63% within the final 24 hours.
ZEC Daily Chart
Source: TradingView, ZEC/USDT
Since its multi-month April highs, ZEC bears have persistently steered the worth south after propelling an up-channel breakdown. On its manner down, the worth motion underwent robust liquidations while the premise line of the BB constricted the bullish comebacks.
Consequently, the alt was down by almost 67.42% (from 28 Mar) and dropped to hit its 16-month low on 12 May. After the $83-baseline posed some hurdles for the sellers, the bulls rapidly provoked a short-term string of inexperienced candles. After forming a morning star candlestick sample, the altcoin continued its oscillation in a bearish rising wedge.
A continued trajectory within the present sample may face robust boundaries within the $113-zone. This space represented a number of boundaries that features the higher fence of the Pitchfork, the 38.2% Fiboancci resistance. Any reversal from this zone may end in a breakout from the wedge and discover testing grounds within the $96-zone. In an unlikely occasion of invalidating the robust bearish tendencies, any shut above the $113-level may take a look at the $126-level.
Rationale
The Relative Strength Index depicted a gradual uptrend from its oversold lows. As far because the 41-support stood robust, the consumers nonetheless had conceivable means to stall the near-term liquidations. But with the -DI line wanting north, retaining a verify on the promoting strain could possibly be a menacing job for the bulls.
Conclusion
In mild of the confluence of a number of hurdles within the $113-zone, ZEC may see a short-term pullback. Any shut beneath the wedge may end in a pathway to its $96-zone lows. To alter the present narrative, the bulls must discover a spot past its Pitchfork and the 38.2% degree.
Finally, keeping track of Bitcoin’s motion and the broader sentiment could be essential to enrich the aforementioned evaluation.
