Zcash showed notable
resilience yesterday amid the rout in the crypto market. The NU7 network upgrade might have provided
some support. As a reminder, the upgrade reduces block times from 75 seconds to
25 seconds, making payments three times faster.
It will also disable older
Sprout transaction pools and introduce a Network Sustainability Mechanism aimed
at supporting the network’s long-term funding. This is an important milestone
for Zcash’s development.
Nevertheless,
the macro headwinds will continue to limit the upside. The Democratic Congress is
expected to limit fiscal expansion and bring tighter regulation and restriction
on AI infrastructure. Since the US economy is leveraged to AI investment, it
could lead to a slowdown in growth and weigh on risk sentiment.
The wild
card is the US-Iran situation. A breakthrough in negotiations would be positive
for Zcash on improving growth outlook and risk sentiment. An escalation, on the
other hand, will likely trigger another selloff on increasing growth concerns
and safe haven flows, although there’s a chance that it could be short-lived if
Trump launches limited strikes just to save face before exiting the war.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcashis approaching the major
resistance zone around the 1,380 level. If the price gets there, we can expect
the sellers to step in, with a defined risk above the resistance, to position
for a drop into the 1,031 support. The buyers, on the other hand, will want to
see the price breaking higher to increase the bullish bets into the 1,692 level
next.
ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have an upward trendline defining the bullish momentum into the
resistance. The buyers will likely continue to lean on the trendline, with a
defined risk below it, to keep pushing into new highs. The sellers, on the
other hand, will look for a break lower to pile in for a drop into the 1,031
support next.
ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the buyers will continue to lean on the trendline
to target new highs, while the sellers will wait for a break below the
trendline or a rally into the resistance to position for new lows. The red
lines define the average daily range for today.
UPCOMING CATALYSTS
Todaywe conclude the week with the US NFP report and the University of
Michigan Consumer sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.