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.
Author
FXStreet Team
FXStreet
