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Zcash will be looking to brush off this morning’s bear market dip and continue its recent bullish uptrend, with the community rallying in support ahead of the new Zcashd 1.1.0 protocol release on April 30th.
This will be the first system update to support the new Overwinter network upgrade, which has been designed to
“… strengthen the protocol for future network upgrades, paving the way for the Zcash Sapling network upgrade later this year. Overwinter includes versioning, replay protection for network upgrades, performance improvements for transparent transactions, a new feature of transaction expiry, and more.”
Let’s have a look at the Zcash chart below to see if the price can recover its 12.15% loss and where this new announcement could take us.
The Story So Far..
In the 3hr chart above we can see that a golden crossover between the 50/200 EMA signalled the early breakout around April 18th, which took ZEC to $330 before correcting earlier today.
Following the sudden bear market dip we saw this morning, the asset has now retraced back to the lower curving support (white lines) but still remains in the projected uptrending area.
To support this idea we would want to see the converging MA’s on the MACD return above the signal line as momentum gathers for a second breakout attempt.
The Current Trend
Diving into the present price action over 5 minute candles, ZEC has already started to rebound off the $270 support with the price action passing bullishly through the kumo cloud on the Ichimoku indicator. This uptrend indication is also supported by a Tenkan/Kijun crossing.
13/34 EMAs are bullishly converging upward.
MACD is also breaking back above the signal line with the RSI also swinging back towards the upper channel area.
Bollinger bands are also showing positive sentiment, with the price action moving toward the upper band.
From these indications we can assume that the price will reverse back towards the channel resistance.
Zcash (ZEC) Price Prediction
Zcash continues to track well within the aforementioned white curving trend lines, despite brief bearish opposition.
If support is able to continue driving Zcash back towards $315 then we could witness an early breakout target of $350 (11.11% gain from the $315 breakout point).
From there, $410 and $490 appear to be the next strong levels where ZEC will meet likely resistance; offering a respective 51.85% and 81.48% gain at these levels from the breakout point.
Stay tuned for the Overwinter update which is projected to go live around June 25th and the later Sapling network upgrade towards the end of 2018. Expect some strong bullish activity in the run ups to these events!