- Shielded ZEC withdrawals supported on a regulated exchange for the first time.
- ZEC begins a consolidation period above the support at $60 while dealing with a parallel descending channel breakout.
Zcash, a privacy-oriented digital asset, has continued to slice through crucial support levels since it traded above $100 in the first week of August. The price has been maintained within the confines of a parallel descending channel. Fortunately, support at $50 came in handy, hence the reversal above $60. ZEC is teetering at $61 amid a push from the bulls to break the channel resistance.
Gemini introduces Zcash shielded withdrawals
Gemini, a fast-growing cryptocurrency exchange, has added support for “shielded Zcash withdrawals.” According to Gemini, “shielded ZEC withdrawals give you an added layer of financial privacy within a regulated and compliant framework.”
The development is massive for Zcash and the rest of the crypto space because it marks the first time a regulated exchange has supported shielded ZEC withdrawals. With this support, Gemini hopes to give individuals control of their privacy. Moreover, it illustrates that with proper knowledge, regulators do not need to fear privacy-oriented coins.
Zcash on the verge of a breakout
The parallel descending channel support has been vital in keeping bears in check. However, the channel resistance is delaying a much-anticipated breakout. At the moment, the Relative Strength Index (RSI) shows that consolidation has taken over. In other words, ZEC is likely to trade horizontally above $60 (initial support).
ZEC/USD daily chart
If bulls regain full control over the price, a breakout from the channel will place Zcash in a trajectory for gains to $85 and $100, respectively. The 50-day Simple Moving Average (SMA) will hinder growth below $70.
On the flip side, support is presented at the 200-day SMA ($55). The buyer congestion zone will come in handy if declines slice through $60. Other key levels to have in mind include $50, the channel support and $40.
Santiment’s “Daily Active Addresses” metric reveals that the number of new addresses joining the network has been on the rise since September 23. By September 29, the addresses joining the Zcash network had climbed to 3,400 from 3,250. Network growth tends to signal the stability of the cryptocurrency value and the growth potential. Therefore, as inflow increases into the network, ZEC is bound to extend the uptrend.
Looking at the other side of the fence
Zcash is trading below the 50-day SMA, bringing to light the presence of sellers in the market. Their influence over the price cannot be ignored. In this case, the longer the breakout towards $85 takes, the stronger the bears become. At the same time, the delay in the breakout is leading buyers into exhaustion. If the initial support at $60 caves, ZEC/USD could tumble to affirm support at the 200-day SMA. A move such as this could also extend towards $50.
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