Key Market Indicators for Zcash (ZEC)
- •ZEC surges 700%, with TD Sequential signaling a potential profit-taking phase.
- •Key support is identified around $220, with a possible rebound to $300 or a risk of a plunge to $180.
- •An overbought Relative Strength Index (RSI) at 78 and a bearish MACD cross suggest a risk of short-term correction.
The cryptocurrency market has been abuzz with Zcash (ZEC) recently, following a remarkable 700% price surge. Analyst Ali (@ali_charts) recently shared a chart on X highlighting a TD Sequential indicator, suggesting it may be time to book profits.
The chart, created with TradingView, shows a “1” signal after a completed 9-count, a classic sign of potential trend exhaustion in the weekly timeframe. With ZEC currently trading around $241 (based on recent market data), this signal comes as the Relative Strength Index (RSI) nears overbought territory at 78, and a bearish MACD cross looms, reinforcing the case for a pullback.
Price Targets and Support Levels
The TD Sequential, a popular counter-trend tool, indicates that after such a steep rally, ZEC might face a correction. Ali suggests monitoring key support levels around $220, with a potential rebound target at $300 if the dip holds.
However, a break below $180 could signal deeper losses. This analysis aligns with broader market sentiments, as funding rates remain neutral and Bitcoin dominance (BTC.D) shows subtle upward pressure, hinting at a possible shift in capital flow.
Market Sentiment and Strategy Recommendations
For investors, this presents a strategic moment. Those holding ZEC after its meteoric rise might consider partial profit-taking to lock in gains, especially with technical indicators flashing caution. Long-term holders, however, could view a dip as a buying opportunity, given ZEC’s privacy-focused utility and its current rank at #30 on CoinMarketCap with a $3.9 billion market cap. As always, risk management remains key—set stop-losses and watch for confirmation of the reversal before acting.
The crypto community on X has mixed reactions, with some thanking Ali for the insight, while others debate the timing. Whether you’re a trader or a hodler, staying attuned to these technical signals could be the difference between capitalizing on the surge or weathering a downturn.