Zcash (ZEC) has put up a 12.24% rise in value and is currently trading within the $570 mark. It has been riding a clean ascending channel, respecting every higher low along the way. Notably, it’s a sign that buyers are consistently stepping in at higher prices, which is what a healthy uptrend is primed for.
On top of that, Zcash is printing a cup-and-handle breakout, one of the more reliable bullish continuation patterns in technical analysis. Moreover, the bulls are eyeing the upper channel boundary near $580 as the immediate target.
Beyond that, the setup points to the $700 range if the momentum holds. But the $540 level would be a key support that needs to hold for this bullish structure to stay. A breakdown below this zone risks completely erasing recent gains and sending the ZEC price back to retest previous lows.
The short-term price outlook of the ZEC/USDT trading pair reports a bullish presence. It may test the crucial resistance at around $573.64. With an extended upside pressure, the golden cross could take place, and the bulls would likely drive the price above $577.
On the flip side, upon a bearish reversal in the Zcash market, the price could instantly fall to the support range at $567.11. Further correction on the downside might initiate the formation of the death cross, and the asset’s price would plunge below $563.
Zooming in on the technical chart, the MACD line has crossed and held above the signal line, indicating that short-term buying is aggressively accelerating. As both lines are above the zero line, the long-term macro trend is firmly controlled by the bulls.
This is a strong buy-and-hold or momentum-continuation signal. It shows that ZEC’s upward trend has strong underlying strength. Also, it may make a sudden reversal highly unlikely in the immediate term.
Furthermore, the daily RSI reading of Zcash staying at 71.40 confirms that it has entered the overbought zone. The buying force has pushed the price up too fast, moving it above the standard 70-ceiling.
The momentum is stretched thin, with the probability of a period of consolidation is high as the early buyers begin to take profits. Therefore, entering new buy positions at this level is high-risk.
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