ZCash had a very quiet session on Tuesday, but that might be exactly what was needed as we had formed a hammer on Monday, and now it looks like we are hanging about the $122 level. This is obviously a market that will continue to be very noisy, right along with the rest of the crypto world. The markets have been beaten up rather hard, and ZCash would not be any different.
Keep in mind that risk appetite is a major driver of where crypto goes, and right now there is a severe lack of risk appetite. I believe at this point we will more likely than not continue to see risk appetite assets such as crypto suffering, and even if we do get a rally, it will probably be short-lived at best. The 200-day EMA above $144 will more than likely be a massive ceiling in this market. In other words, that is probably about as high as I think the market will go in the short term.
On the other hand, if we were to break down below the bottom of the candlestick, then we could see ZCash drop down to the $100 level, maybe even down to the $85 level after that. The $85 level has been a huge support level multiple times, and we had even formed a bit of a double bottom at that area previously that ended up sending this market much higher. If we were to break down below the $85 level, it would almost certainly send this market much lower.
As far as buying for a longer-term move is concerned, I would need to see larger coins such as Bitcoin and Ethereum take off to the upside first, and then follow with some of the smaller markets. Because of this, you are probably more or less in a bit of a “wait-and-see” type of situation, but if you are a short-term trader, you may be able to play a potential pop higher. I do not have any interest in trying to get too cute with this market though, so I am more than willing to wait for the bigger markets to push things higher. If we do somehow manage to break above the $160 level, then we will challenge the $180 level. After that, the $200 level then gets targeted.
