Zcash extended
the gains yesterday as renewed hopes for a US–Iran deal helped improve risk
sentiment across crypto markets. Reports that Iran’s security chief met with
Supreme Leader Khamenei raised hopes of a potential agreement. However, a
sustained recovery in ZEC will likely require more concrete progress, as setbacks
or renewed tensions could quickly reverse recent gains.
There
might also be some pre-positioning ahead of the upcoming NU7 network upgrade,
targeted for early November. The upgrade is expected to reduce block times from
75 seconds to 25 seconds and introduce changes to the network’s fee mechanism,
potentially improving transaction speed and long-term sustainability. Although,
Zcash-specific catalysts can provide support for the cryptocurrency in the
short-term, the macro fundamentals will still dictate the general trend.
The focus
today will also be on the FOMC decision, with the Fed widely expected to leave
interest rates unchanged. With no new projections or dot plot expected, the
attention will be on Fed Chair Warsh’s comments and the statement’s language. A
hawkish surprise could strengthen growth concerns and weigh on ZEC amid general
risk aversion. A neutral hold that avoids signalling imminent tightening, on
the other hand, could support a relief rally in the cryptocurrency.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcashis approaching a 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. 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 sellers will likely wait for the price to come
into the resistance or break below the trendline, while the buyers will look
for a break above the resistance or a bounce around the trendline. The red
lines define the average daily range for today.
UPCOMING CATALYSTS
Today we have the FOMC rate decision. Tomorrow, we get the US GDP report, the
US PCE and the latest US Jobless Claims figures. On Friday, we conclude the
week with the US Employment Cost Index.
This article was written by Giuseppe Dellamotta at investinglive.com.