This week saw ZEC through a new milestone following a series of surges since last month. However, it lost steam in the mid-week and now trades calmly due to a sudden volatility drop – is still up by over 50% monthly.
After declining by more than 60% in four months, ZEC found support above $15 in early July and gradually picked up with a dragonfly candle formation. This led to a steady two-week positive action but it later entered a consolidation phase as volatility shrinks for 21 days.
Trading got a bit shaky earlier this month due to a sudden sell-off and the price dipped below the consolidation phase. A quick interception from the bulls’ side stopped the sell-off at $25 and the price recovered with a long wick.
This counter move brought positive actions back since last week and the price reached a new milestone of $45.4 on Wednesday. The price level was rejected and the buying cooled off to where is now trading calmly at $42.5.
While the recent price actions look like the mid-July pattern, ZEC could enter another consolidation phase before deciding on where to head next. The trend is currently neutral-bullish on the daily chart following an impressive 200% increase since July.
ZEC’s Key Level to Watch
Source: Tradingview
Now that trading is calm, the key level to watch for the next upward movement is the new current high of $45.4. A successful surge above it should bring a test at the $48 resistance (December 22 high) and $51.3 (February 2023 high).
A retracement below the weekly $39.5 support could bring a retest at the monthly broken high of $34.8 before resuming buying. $30 is another major support to watch in case of further decline.
Key Resistance Levels: $45.4, $48, $51.3
Key Support Levels: $39.5, $34.8, $30
- Spot Price: $42.5
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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