FUNDAMENTAL OVERVIEW
Zcash has been supported into new highs by several idiosyncratic
catalysts like the European asset manager 21shares launching the first European
ETP tied to Zcash or Paradigm’s, a firm with $12 billion dollars in assets
under management, investment in Zcash and its ecosystem.
Moreover, Grayscale’s Zcash ETF (ZCSH) underwent a 3-for-1 share split, with
split-adjusted trading beginning tomorrow. This is going to reduce the share
price and could attract more retail demand.
On the
macro side, the crypto market has come under pressure recently due to renewed US-Iran
tensions. The negative sentiment started last Wednesday when
Trump poured cold water on expectations of an earlier end to the Iran war by reiterating
that the US would make a deal with Tehran after the midterm elections.
Heading into the weekend though, the hopes for a US-Iran deal returned
after Iran sent a proposal to reopen the Strait of Hormuz within seven days on
certain conditions. Unfortunately, Trump rejected the proposal on
Saturday and told reporters that he expected to resume bombing Iran after the
midterms.
Yesterday, we
started to get some tentatively positive headlines during the American session
pointing to possible US concessions. According to Axios, Trump reportedly offered Iran sanctions relief and
access to frozen funds in exchange for progress on nuclear program, although
the US President later denied such reports.
He did confirm
though that the American and Iranian negotiators are engaged in talks through
mediators. Iranian Foreign Minister Araghchi said he expected a formal answer today
to Tehran’s proposal to reopen the Strait of Hormuz.
In the bigger picture, the focus will remain on the Middle East and the
Fed. A breakthrough would be positive for Zcash as the aggressive rate Fed hike
bets will likely get pared back. A negative outcome, on the other hand, will
likely continue to put a lid on further Zcash gains.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcasheventually pulled back into
the major upward trendline where we got a rejection. The buyers will continue to
step in around the trendline, with a defined risk below it, to keep targeting
new highs. The sellers, on the other hand, will want to see the price breaking
lower to pile in for a drop into the 1,031 level next.
ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have an important zone around the 1,440 level where the price
got rejected from several times in the past weeks. As long as the price stays
below the zone, we can expect the sellers to remain in control and keep
targeting a break below the trendline. The buyers, on the other hand, will want
to see the price rising back above the zone to start piling in for a rally into
1,800 level next.
ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1
hour chart, we have a downward trendline defining the recent pullback into the
major upward trendline. If we get a move into the trendline, we can expect the
sellers to lean on it, with a defined risk above it, to target a break below
the major upward trendline. The buyers, on the other hand, will look for a
break higher to increase the bullish bets into new highs.
UPCOMING CATALYSTS
Today, we get the US Consumer Confidence report and the US
Job Openings data. Tomorrow, we have the US ADP and the US PCE price index. On
Thursday, we get the US ISM Manufacturing PMI and the latest US Jobless Claims
figures. On Friday, we conclude the week with the US NFP report. The focus,
though, will remain on US-Iran developments.
This article was written by Giuseppe Dellamotta at investinglive.com.