On July 14, ZCash (ZEC) saw a significant increase, climbing 13.85% and continuing its momentum with an additional 1.6% rise the following day. This uptick has been accompanied by a notable 7.70% increase in Open Interest within just 24 hours, suggesting growing interest among traders.
AMBCrypto's recent analysis indicates a cautiously optimistic outlook for swing traders and investors. The $560 mark, previously a critical short-term resistance, has now been surpassed. However, the next major challenge lies ahead at the $644 level. Currently, ZCash has successfully reclaimed two out of three key resistance points, including the $500 supply zone and the $560 retracement level.
Earlier this year, ZCash faced a setback due to a critical vulnerability discovered in the Orchard feature, which allowed for the potential printing of unlimited ZCash. This incident led to a sharp sell-off. However, since early June, the price has steadily recovered, bouncing back from the local low of $368.3 to achieve an impressive 56.12% gain in under three weeks.
As trading patterns evolve, the 3-day chart's Chaikin Money Flow (CMF) remains above +0.05, indicating strong buying pressure, while the Relative Strength Index (RSI) is at 60.6, suggesting solid upward momentum. Traders are now eyeing the 4-hour chart, where a bearish trend has been noted. Nevertheless, the recent breach of the 78.6% retracement level at $560.11 raises hopes for further upward movement.
For ZCash to maintain its bullish trajectory, a move beyond $644 would be critical, potentially flipping the H4 structure into bullish territory. The next targets could be the May high at $690 and a further bullish objective of $750. Traders are encouraged to look for sustained capital inflows and a decisive move past $644 to confirm the trend reversal.
The positive breakout past the $500 supply zone has been supported by buying activity on higher timeframes. However, caution is advised, as lower timeframe charts reflect some uncertainty regarding the ability of ZEC bulls to sustain this recovery.
This material is for informational purposes only and does not constitute financial advice.
