Zcash Price Analysis: ZEC/USD Jumps 30% in Recovery as Foundation Teases Reference Wallet Design

 

  • ZEC/USD bulls are making a strong case for recovery, as price makes 30% advance.
  • Zcash foundation teases the design concepts of its awaited reference wallet.

ZEC/USD is on a strong road to recovery following the latest bottom. The price has gained over 30% after the sellers became very much exhausted. A drop of around 55% was seen from the 9th November, when prices were up at the $140 mark. The market bulls at the time were trying to escape a pennant formation, but ran into resistance at the upper trend line of that pattern. Momentum to the downside was heavy, as seen across the entire cryptocurrency market. ZEC/USD was forced to smash through support at the psychological $100 mark.

Zcash Teases with Reference Wallet Design

Earlier this week, the Zcash foundation posted some concepts of design for their anticipated ‘reference wallet’. Back in October, post the Sapling upgrade, they provided an introduction to the Zcash reference wallet. They noted it will have minimal features, as it is not designed to an end user app, but rather a resource. The foundation said:“The reference wallet’s goal is to deliver a light client example that focuses on Sapling shielded interactions. Leverages a zcashd full node as a server in a privacy-preserving way, and consumes the native rust implementation of Zcash wallet components”.

In the latest blog post, they discussed the design methodology and also considerations for its users. The foundation noted: “our reference wallet aims to prove that Zcash shielded transactions can work on mobile devices with limited resources, now that the Sapling network upgrade is live. From the last design post, we know the main goal of the reference wallet is to increase adoption of the cryptocurrency and promote the use of shielded addresses. Currently, there isn’t a confirmed date of release for the reference wallet.

Technical Review – ZEC/USD

ZEC/USD daily chart

Between the 24-27th November, when ZEC/USD was under heavy amount of pressure, the price formed a bottom area. This was seen around the $60-65 region, where buyers were firmly defending this zone. At the time is was not clear as to when this market blood bath was going to end. The RSI was well into oversold territory, around the 20 mark. Bulls have made good headway, with intentions of pulling back a decent proportion of losses encountered.

Upside Targets

Immediately there is some minor resistance seen around the $85-$90 range. This is where the price briefly consolidated on 21st November, before the continued hard selling. A break above this area, should see the bulls gunning back for the psychological $100 mark. In proximity to this was a strong acting demand zone. It had provided support from September, until a firm breach lower was forced by the market bears on 19th November. Lastly, further north, eyes would be on a retest underneath the breached pennant pattern, that ZEC/USD was trading within 12th September to 14th November.

Disclaimer: The author 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.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.