ZEC Prices Shoot Up As Demand Increases Within Expanding Channel

Despite a 20% drop within the expanding channel, the ZCash (ZEC) prices reverse from the support trendline and the 50-day SMA. And with a 14% recovery in the last five days, the possibility of a bull run to the $83 mark increases. So, will the uptrend break the 100-day SMA, or will buyers fail to sustain the uptrend?

Key Points:

Source - Tradingview

ZEC Technical Analysis

Amid the bullish recovery from the psychological mark of $50, the ZEC prices form an expanding channel in the daily chart. The bullish pattern accounts for a price jump of 34% in the last 45 days.

However, the recent bear cycle within the expanding channel accounts for a 26% drop to the $60 mark. Nonetheless, the buyers regained trend control at the support trendline accounting for a 14% jump last week.

As the recovery rally gains momentum, the possibility of an uptrend to the overhead assistance of $83 increases. Hence traders can find multiple buying spots at the current market price.

Currently, the ZEC market price trades close to the $70 resistance level, but the increase in trading volume projects a bullish breakout.

If the $70 breakout rally approaches the $83 mark, the possibility of another breakout testing the psychological mark of $100 increases. However, a bearish turnaround will test the support trend line increasing the chance of a downfall.

Technical Indicators

The RSI slope reverses sharply to rise about the halfway line and 14-day average line, reflecting an increase in the underlying bullishness. However, a bearish divergence is evident between the last two dips at the support trade line, weakening the possibility of an uptrend.

Moreover, the possibility of a bullish crossover in the fast and slow lines increases as the bearish histograms display a declining trend.

Resistance Levels: $70 and $83

Support Levels: $60 and $50