Bollinger Bands (BB) baseline (green) restricted revival attempts for nearly seven weeks, Zcash [ZEC] Bears lowered altcoin to its annual lows last week. The baseline has crippled the buyer’s ability to maintain close proximity near the BB’s upper band.
Recovery to the $ 113 level could slow as the currently rising wedge setting is strong. At the time of the press, ZEC traded at $ 103.9, down 2.63% in the last 24 hours.
ZEC daily chart
Since its April highs in the months, ZEC bears have continued to move prices south after driving the collapse of the upchannel. Along the way, price behavior underwent a strong liquidation while the BB baseline restricted a bullish comeback.
As a result, alt fell by nearly 67.42% (since March 28), hitting a 16-month low on May 12. The Bulls soon triggered a string of short-term green candles after the $ 83 baseline brought some hurdles to the seller. After forming the Morningstar candlestick pattern, Altcoin continued to vibrate with a bearish rising wedge.
Continuing orbits in the current pattern can face strong barriers in the $ 113 zone. This area represents many barriers, including the upper fence of the pitchfork and 38.2% Fiboancci resistance. A reversal from this zone will cause a breakout from the wedge and may find a test ground in the $ 96 zone. In the unlikely event of nullifying the strong bearish trend, above the $ 113 level, we could test the $ 126 level.
The rationale
The Relative Strength Index has shown a gradual upward trend from the oversold lows. As long as 41 support was strong, buyers still had possible means to stop short-term clearing. However, as the -DI line points north, continuing to check selling pressure can be a threat to bulls.
Conclusion
In the light of the confluence of multiple hurdles in the $ 113 zone, ZEC may see a short-term setback. Getting closer to the bottom of the wedge could pave the way for lows in the $ 96 zone. To change the existing story, the bull needs to find a pitchfork and a place above the 38.2% level.
Finally, keeping an eye on Bitcoin’s movements and broader emotions is important to complement the previous analysis.
