ZCash or ZEC is in clear downtrend and has been breaking important support levels.In my last update of ZEC , i was hoping that it may bounce, but that bounce never happened. One can also have a look on that update by clicking link i.e. https://steemit.com/zcash/@jimmyrai28/zcash-zec-usd-update-01-07-2017-testing-support-lets-see-if-its-breaks-or-launch
So lets take a look on chart below firstbefore going any further with this analysis.....
There are following point to take note of on chart above:-
- Support 1: Last time when i did technical analysis of ZEC on 01/07/2017, it was testing its support of $284, but it broke this support on that day and closed below it, which was itself a weak signal. Next two day it manage to close above this level of $284 but yesterday it closed below this support and today it again trading below this support. Currently ZEC is trading at $276 and if today this script closes around these level then bear should get ready as it would be second close below key level.
- Falling Channel: Yesterday ZEC touched or tested higher falling trendline of this channel. It has been following this channel in zigzag way, and now it can touch or test lower trendline of this channel and target price for that is around $227 level.
- 50 Day EMA: This is the only silver line in ongoing correction in zec. This red wavy line on chart above is at $273.15 level and right now this moving average is providing cushion to falling price as it is being tested. If this support held for next few days, one can expect a bounce.But that occurrence yet to fructify, so lets wait for that.
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Now the Conclusion
In conclusion i must say it is very important for ZEC to stay above the level of $273, If this level held, then one can hope of reversal, on the other hand, if ZEC closes below it too then bears can pounce on this opportunity to ride the slide. Right now odds are in favour of bears, so lets how thing pans out from here on.
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