ZCash plummeted during the trading session on Friday as we continue to see crypto underperform. ZCash has broken below the 200-day EMA, and perhaps more importantly, the hammer from two weeks ago. The market is now just below the $130 level, and it looks as if it is ready to go much lower, testing the $120 level next.
Furthermore, the market is closing at the very bottom of the candlestick, which typically means there is a bit of follow-through, and at this point, I think it is probably only a matter of time before we see the market break down below the $120 level. At this junction, if we see the market rally, I think the 200-day EMA would be a potential barrier, near the $145 level.
The size of the candlestick for the session on Friday does suggest that there is a lot of momentum jumping into the downside, and it is likely that we will continue to see ZCash fall right along with the rest of the crypto market. Keep in mind that Bitcoin has struggled during the day, so the losses are typically magnified in the smaller coins such as ZCash. The 50-day EMA is currently at the $151 level, and it looks as if it is going to break below the 200-day EMA, forming the so-called “death cross.”
On the downside, I think it is likely we are going to find plenty of support near the $85 level, which could be a potential floor in the market. Looking at this chart, I do think we have further to go, but if we were to turn around and take out the two moving averages, it would be a major coup for this market. We need to see Bitcoin and Ethereum turn around and rally significantly to make this market go higher. Until then, it is very likely that ZCash will continue to be very soft. Furthermore, this is measured against the US dollar which has been like a wrecking ball for almost all assets, so keep that in mind as well. You need to pay close attention to the US Dollar Index, because it could give you a bit of a “heads up” as to where not only ZCash goes, but the rest of crypto for that matter.
