Technical Analysis and Market Entry: Zcash (ZEC/USD) Bulls Testing Big Barrier for Greater Heights
- Zcash (ZEC) has rallied to the highest levels seen since 18th November 2018, as the bulls continue the 2019 recovery.
- The Zcash Foundation has announced a new partnership with Parity Technologies to work on a new software client.
ZEC/USD: Recent Price Behavior
Zcash bulls have been driving the price higher over the last few sessions, running towards six consecutive days in the green. ZEC/USD has gained as much as 35% within the noted period, jumping to the highest level seen since 18th November 2018. The move higher is part of the strong recovery, which has been observed through 2019 so far.
Since the beginning of 2019, ZEC has rallied some 155% from the lows of $45 up to the most recent high print at $116. Given the pace of current upside momentum, there aren’t any signs of a slowdown at present; however, there are some barriers to note. The price at the time of writing is trying to break down supply, which can be seen running from the $105-$117 range. Should the bulls manage to clear and close above the noted area, it could invite a fresh wave of buying pressure.
Zcash: New Software Client
The Zcash Foundation has recently announced a new partnership with Parity Technologies, a blockchain company. The collaboration will see the two working to release a new, open source software client for the cryptocurrency Zcash, according to an official press release.
The new software client, Zebra, will be an acting alternative to the current existing zcashd. If one client happens to go down, then the Zcash network will not be at risk of being totally compromised. Additionally, the software is also designed to further improve on the Zcash performance in other ways; being able to “detect implementation-specific bugs” and avert problems related to its consensus mechanism.
In terms of the responsibility for Zebra’s development and maintenance, that will all be handled by the Zcash Foundation.
Parity Technologies CTO spoke on the partnership:
“Zcash can now boast a more diversified community that can effectively tailor experiences for Layer 2 developers as well as end-users.”
A confirmation for a buy could be upon a daily break and close above the earlier noted supply zone, $105-$117. In proximity to this is the 61.8% Fibonacci, which is additionally proving to be a barrier. The entry would be desirable upon a breakout and retest, $116-$117, proving stability as new potential support.
In terms of targets, the first area of interest is eyed up at $140, where ZEC/USD last traded between 8-13th November, before heavy selling kicked in. Lastly, $160, which was last seen in September 2018, is another attractive area. Stops may be considered at $103, upon achieving the desired entry, leaving enough breathing room just below the detailed zone.
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.
Featured image courtesy of Shutterstock.