Zcash
rebounded from recent lows as risk sentiment improved slightly following the
fall in oil prices after Trump waived several Russian sanctions over the
weekend. However, ZEC remains vulnerable to deteriorating macro conditions,
with persistently elevated energy prices and recent growth concerns continuing
to weigh on the crypto market.
The
upcoming NU7 network upgrade is approaching a key milestone, with developers
expected to make a final decision on mainnet activation tomorrow. The upgrade
targets November 5 and would drastically reduce block times, alongside changes
to the network’s sustainability mechanism. A confirmation of the November 5 rollout could be positive in the short-term, while testing problems or a delay could disappoint traders.
Without
further improvement in macro conditions, though. the recent rebound might
struggle to sustain the momentum. The most important data to watch this week
will be the US Flash PMIs on Friday to see whether growth concerns are justified.
Stronger than
expected data could ease those concerns and support ZEC in the short term,
while a weak report could put renewed pressure on the cryptocurrency.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcashcouldn’t quite reach the key
1,031 as the price rebounded before touching that level. If we do get another
pullback into the level, we can expect the buyers to step in, with a defined
risk below the level, to position for a rally into the 2,000 level. The
sellers, on the other hand, will look for a break lower to increase the bearish
bets into the 800.00 level next.
ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have a downward trendline defining the bearish momentum. We can
expect the sellers to lean on it, with a defined risk above it, to keep pushing
into new lows. The buyers, on the other hand, will look for a break higher to increase
the bullish bets into the 2,000 level, with the 1,351 level as the first
target.
ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the sellers have a better risk to reward setup
around the downward trendline, while the buyers will need a breakout to open
the door for new highs. The red lines define the average daily range for today.
UPCOMING CATALYSTS
On Thursday we get the latest US Jobless Claims figures, while on
Friday we conclude the week with the Flash US PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.