Trade Recommendation: Zcash/Ethereum
Our June 25, 2018 trade recommendation for the Zcash/Ethereum pair (ZEC/ETH) hit its mark on August 24. On that day, ZEC/ETH climbed to as high as 0.50352362. Despite the overall bearish sentiment in altcoins, those who followed the trade recommendation grew their investments by over 40% in two months.
While we were right on the money in terms of price in this trade, what we did not expect was the strong bullish momentum of the market. The pair exceeded our expectations and climbed as high as 0.6527 on September 26. Though we missed this rally, we were confident we’ll get another shot. After all, the market is in a clear uptrend.
Technical analysis show that ZEC/ETH has breached resistance of 0.55 on September 5, 2018. This triggered the breakout from the large triple bottom structure on the daily chart.
The strong base built by the triple bottom is what’s enabling the market to generate strong rallies. A significant number of participants are holding positions between 0.35 and 0.55. They won’t easily let go of their positions until they earn substantial profits or if the market nosedives. So far, the latter scenario is unlikely as 0.55 support seems to be holding very well.
The strategy is to buy as close to 0.55 support as possible. We expect the market to consolidate for some time above this level before continuing its uptrend. This should be a good opportunity for you to accumulate positions.
As long as ZEC/ETH is above 0.55 it has the momentum to climb to our initial target of 0.70 and then 0.80. The process may take less than three months.
Daily Chart of ZEC/ETH on Poloniex
As of this writing, the Zcash/Ethereum pair is trading at 0.55965912 on Poloniex.
Summary of Strategy
Buy: As close to 0.55 as possible.
Target: 0.70 first and then 0.80.
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.