Zcash price poised to retreat before another leg up
|- Zcash price rally is being confirmed by the relative strength index (RSI).
- However, this cryptocurrency seems primed to consolidate before the uptrend resumes.
Since emerging from a triangle formation on March 6, Zcash price has gained over 25% in just four days and it is at a notable deviation from the 23 four-hour simple moving average.
Zcash price at risk of a downswing
ZEC’s upward breakout from a descending triangle has stalled at a price range defined by the .618 retracement level at $157 and the measured move target of $160.
Upward breakouts from descending triangles are not a regular occurrence, but they are more reliable and generate superior returns versus downward breakouts.
The adverse price reaction to the resistance raises the probability that Zcash price will enter a corrective phase to release compression. The .236 retracement level at $146 is essential support.
ZEC/USD 4-hour chart
To invalidate the correction thesis, the digital asset will need to close above $160 on the 4-hour chart. It would introduce the potential for Zcash price to rally to at least the .786 retracement level at $171.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.