Zcash price could be on the verge of a correction as indicator flashes sell signal

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.