Trade Recommendation: Zcash (ZEC)
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
Summary of Strategy
Buy: Current price of $68.575.
Targets: $89 and $108.
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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