Technical Analysis and Market Entry: Zcash Subject to Another Punishing Bite from the Bears
- Zcash price trading conditions are significantly narrowing, subject to an imminent breakout.
- ZEC/USD price action is moving within a bearish pennant structure, via the daily chart view.
ZEC/USD: Recent Price Behaviour
The Zcash price has been forced to move within consolidation mode, as trading conditions further tighten. A lack of committed trend observed for ZEC/USD since the latter stages of September, going on four weeks. The range to the upside is capped at $38, with support down at $35.
Price action has formed a bearish pennant pattern structure, given the above-described technical behaviour. There is less room for the price to manoeuvre, which is why raising the case for an imminent breakout. Technically, vulnerabilities tilted to the downside, unless the market bulls can defy the odds of the setup.
Fake ZecWallet Discovered by Zcash Community
The community of privacy-focused cryptocurrency, (ZEC) recently discovered a suspicious and potentially malicious counterfeit version of Zcash Foundation’s native ZecWallet. The fake wallet was tracked down by the Zcash community, who also warned the users against the same.
The bad actors were inviting Zcash users to upgrade their wallets to the latest version that contains numerous improvements. However, they provide the wrong URL that has nothing to do with the official repository of ZecWallet.
Zcash community members tweeted – it was also retweeted by Zcash developer Electric Coin Company:
PSA to all Zcash users! There is a fake version of ZecWallet that likely contains malware (size and checksum is different) double-check you are downloading from official @zecwallet repo on GitHub.
It follows reports from last month when a blockchain developer also revealed a bug on most of the forks of Zcash which could leak metadata containing the full nodes’ with shielded addresses (zaddr) IPs.
Given the earlier described bearish pennant pattern, further moves to the downside are still eyed. The lower tracking support is seen just below at $35, a break and daily closure south of this would invite another wave of selling pressure. In terms of targets south; $29, $25 and then $20. Entry would be around the current market price, with stops to be placed just above the pennant at $39.
In an upside case scenario, the bulls will need to force a breakout and closure above the pennant. Should the buyers defy the odds, then appropriate targets would be; $50, $55. The entry would be around $39, with stops to be placed below the structure at $29.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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