Zcash price could be on the verge of a correction as indicator flashes sell signal
- Zcash price has surpassed the 2020-high hitting $120 for the first time in years.
- In the past few days, Zcash has experienced a massive spike in trading volume.
Zcash price is up by 116% in the past two weeks and has established a new two-year high at $120.69. Additionally, the digital asset has seen a massive increase in trading volume which adds a lot of credence to the breakout.
Zcash price could suffer a significant correction after massive rally
On the daily chart, the TD Sequental indicator has just presented a sell signal for the first time since August 2020. In the past, these calls have been notably accurate which adds a lot of selling pressure to Zcash.
ZEC/USD daily chart
Additionally, on the weekly chart, the RSI has just touched the overextended zone which often leads to a pullback. The past three oversold RSI’s have pushed Zcash price down by an average of 65%.
ZEC/USD weekly chart
However, the current Zcash uptrend is intact and bulls remain in control over the short and long trends. On the hourly chart, the most significant support level is the 100-EMA which has served as a guide for the bulls since the beginning of the run on January 6.
ZEC/USD 1-hour chart
As long as the bulls can continue to defend the 100-EMA, the uptrend will remain intact. The only resistance level is established at $120. A breakout above this point can quickly drive Zcash price towards the psychological level at $130.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
