On Thursday, Zcash (ZEC) is currently trading at $258, marking a 4.98% increase in the past 24 hours. The trading volume is showing a strong bullish surge, up 53.12%, and is now standing at $425.35 million. The token total market capitalization stands at $4.24 billion, up 4.85%, according to CoinMarketCap data.
Source: CoinMarketCap
Crypto analyst 0xWhale highlighted a reverse signal in the past 24 hours with an inverted head and shoulders formation seen on the chart. The formation has correlated with the past rallies seen with ZEC. The next technical area will be around the EMA200 levels at $285 and $289.
The analyst added that further increases in Bitcoin could have a positive impact. ZEC rallies tend to increase in strong spurts. The focus is on how ZEC reacts as it approaches the resistance levels. The current formation suggests close monitoring of short-term price action.
Source: X
Additionally, another analyst, CJ Bennett, mentioned a small descending channel. ZEC is currently trading within this channel as it approaches a major decision area. The 50-day and 200-day moving averages have now converged. The averages are just above the current price and within the channel.
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The next move depends on the reaction to this cluster, according to Bennett. A breakout above both averages could indicate the strength of the momentum. A move below the track line could also extend this pattern. The channel still dominates the near-term outlook for traders.
Source: X
A clean breakout above the range of $260 to $265 could pave the way for a move to the upper channel range of $285 to $300. A failure to break this range could result in another move down. The next level of support could be in the range of $220 to $225.
CoinGlass data shows a rising market activity. The trading volume increases by 40.53% to $930.17 million. Open interest rises by 5.45% to $324.14 million. The OI weighted funding rate is 0.0005%, indicating rising activity as traders await direction.
Source: CoinGlass
ZEC is in a position where compression is high. A move is anticipated as the market responds to technical indicators.
Also Read: Zcash (ZEC) Eyes $1,000 Long-Term Target Despite Ongoing Bearish Structure
