Trade Recommendation: Zcash
Zcash (ZEC/USD) is a market that’s still in accumulation. We have this view because the market has failed to take out the range high of $71.50 after several attempts from April 4 to April 10, 2019. The inability of the bulls to stay above $71.50 ignited a pullback. Nevertheless, this correction gives us a chance to buy the dip.
Technical analysis shows that ZEC/USD appears to be creating a bull flag on the daily chart. This pattern is bullish because it suggests trend continuation.
Now, Zcash may still be in range accumulation but the sentiment is slightly bullish. On a closer look, the market broke out from a double bottom pattern on the lower timeframe when bulls took out resistance of $54 on March 19th. That breakout gave Zcash the momentum to tap resistance of $71.50 on April 4th. While bulls failed to take out the range high, this correction gives them the opportunity to retest a key level as they regroup.
The strategy is to buy on dips as close to $54 as possible. $54 is very likely to hold because this demand area offers a lot of liquidity. The market has yet to tap it since the double bottom breakout on March 19th. As long as ZEC/USD is above $54, it will likely rally to our target of $71.50. Take that out and the next target is $87.
The process may take a month.
Daily Chart of Zcash/US Dollar on Bittrex
As of this writing, the Zcash/US Dollar pair is trading at $59 on Bittrex.
Summary of Strategy
Buy: As close to $54 as possible.
Targets: $71.50 and $87.
Disclaimer: The writer 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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