Zcash has recently
completed its major NU7 network upgrade, which went live on November 6. The
upgrade reduced the target block time from 75 seconds to 25 seconds, making
private payments significantly faster. It also introduced changes to
transaction fee allocation to support future mining rewards.
Meanwhile,
developers are already discussing a further reduction in block times to 20
seconds through a potential NU7.1 upgrade. These developments provide a
positive fundamental backdrop, although the macroeconomic and geopolitical drivers
will remain important drivers of ZEC’s near-term price action.
We had some
positive headlines yesterday that increased hopes for a US-Iran deal, although
no concrete breakthrough has been achieved yet.
Today, the focus
will be on the US CPI report. The Y/Y figures will be unavailable because of last
year’s government shutdown. All eyes will be on the Core CPI M/M.
Fed’s Waller has
already signalled that he would support a December rate hike even if October
inflation improves compared with September. More importantly, he said that a Core
CPI reading of 0.3% or higher could justify a larger 50 bps hike.
A more hawkish Fed
without an end to the Iran war is going to weigh heavily on Zcash and the crypto market in general.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcasheventually rejected the 1,380
resistance and erased most of last week’s gains. The price remains stuck in a
wide range, with the 1,031 level acting as support. If the price gets there, we
can expect the buyers to step in, with a defined risk blow the support, to
position for a rally back into the 1,380 resistance. The sellers, on the other
hand, will look for a break lower to increase the bearish bets into the major
upward trendline around the 800.00 level.
ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have a downward trendline defining the bearish momentum. If we
get a pullback, we can expect the sellers to lean on the trendline, with a
defined risk above it, to keep targeting the support. The buyers, on the other
hand, will look for a break higher to pile in for a rally into the resistance.
ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the sellers will have a better risk to reward setup
around the trendline, while the buyers will need a break above the trendline or
a move into the support. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we have the US CPI report. On Thursday, we get the latest US Jobless
Claims figures. On Friday, we conclude the week with the US PPI data.
This article was written by Giuseppe Dellamotta at investinglive.com.