We have a huge fight on our hands in the short term, and I think that is going to be true with most cryptocurrencies.
ZCash initially tried to rally on Wednesday as we rallied ever so slightly but then turned around to show signs of hesitation. We are sitting on the 200-day EMA, suggesting that the market is still going to continue to hear a bit of noise in this area. You can also see that the $145 level has offered support, so I think all of this combines to give ZCash the possibility of rallying. That being said, you can also see that there has been a lot of noise just above, so I think ZCash will be very tight, to say the least.
If we were to break down below the $145 level, then it is likely that the market could go to the $120 level. This is a market that will continue to see a lot of volatility, right along with the rest of the crypto markets. After all, the crypto markets tend to move in tandem, and ZCash is a smaller market. In other words, you need to see Bitcoin and Ethereum take off to the upside for ZCash to have a real shot at going higher.
At this point, it looks as if we are going to go back and forth in this general vicinity but if we can take out the $170 level to the upside, then it would be a very bullish sign. At that juncture, I would anticipate that ZCash could go to the $200 level, where we pulled back from previously. We have a huge fight on our hands in the short term, and I think that is going to be true with most cryptocurrencies. ZCash obviously will attract a lot less attention than Bitcoin or Ethereum, but if they start to rally, then people will start to reach out to further instances of risk appetite, and in places like this. However, if we see Ethereum and Bitcoin start to meltdown, ZCash will be all but dead at that point. The $125 level being broken to the downside opens up a move all the way back down to the $85 level. That obviously would be extraordinarily negative, and I do think that we would see a vicious move at that point, one that would happen very quickly as we would enter “crypto winter.”