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.

Stop: $51.40

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.