Trade Recommendation: Zcash (ZEC)

Zcash

Our June 12, 2019 trade recommendation for Zcash (ZEC/USD) hit both targets. On June 26th, the market climbed as high as $124.775. Those who stuck to the trading plan grew their investments by more than 43% in less than a month.

Zcash has been correcting ever since it posted the 2019 high of $124.775. The pullback drove the pair to as low as $64.712 on July 16th. That’s a massive drop of almost 50 percent in less than one month.

The good news is that Zcash bulls are making their presence felt. They have successfully protected a key area and this tells us that buyers are returning.

Technical analysis shows that ZEC/USD is currently retesting support of $70. We have this view because bears tried to breach it on July 16th. While the market briefly moved below that level, bulls rallied and reclaimed $70 on July 17th. The market has been trading above that level for the most part. It has fallen just below $70 today.

In addition, we can see the 200-day moving average (MA) crawling just below support of $70. Bears will have a tough time breaching this support considering that Zcash is undervalued. Thus, we expect the market to bounce in the coming days instead of continuing its move down.

The strategy is to buy at current levels. If bulls can keep the market from falling further, Zcash will target our range midpoint of $89. Take that out and 108 is next.

The process may take a month.

Daily Chart of Zcash/US Dollar on Bittrex

Zcash crypto chart
As of this writing, the Zcash/US Dollar pair is trading at $68.575 on Bittrex.

Summary of Strategy

Buy: Current price of $68.575.
Targets: $89 and $108.
Stop: $64

 

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.