zcashupdate

ZCash has seen one of the most extreme moves in the crypto market over the past few months. The rally started in September as interest in privacy coins grew and accelerated in October. From a low of about thirty eight dollars in September to a high near seven hundred fifty dollars in November, ZCash gained more than eighteen times in less than ten weeks. This was an extraordinary run that caught the attention of many traders.

The peak in early November came at the same time as Bitcoin lost the one hundred thousand dollar level and the overall market mood turned negative. This combination appears to have ended the strong bullish momentum for ZCash. Many analysts had already warned that profit-taking would be necessary after such a large rise. In fact, a fifty three percent drop over the past two weeks confirmed those earlier predictions.

Looking at the charts, the daily timeframe shows a shift toward bearishness. The higher low near four hundred seventy dollars was broken about ten days ago. A further drop below the previous swing low around four hundred twenty four dollars indicated that a retracement phase had begun. This suggests that more losses could follow before any new upward move. However, long-term Fibonacci levels show that the rally may not be completely over. The seventy eight point six percent retracement level has not been broken yet, which could still support a long-term bullish view.

On the hourly chart the structure is also bearish. There is a supply zone between four hundred and four hundred twenty dollars. Any small bounce in this area is likely to face selling pressure. Momentum indicators show that bears are in control. The MFI on the daily chart dropped below twenty, and the hourly chart shows capital flow is still in favor of sellers. OBV on the hourly chart also trends downward, supporting the idea that the retracement could continue.

Important levels to watch include the resistance zone at four hundred to four hundred twenty dollars and short-term support at about three hundred fifteen to three hundred twenty one dollars. If price closes below three hundred fifteen dollars on a daily basis, it could be a strong signal to sell. Beyond this, the next support is near one hundred ninety seven dollars according to Fibonacci retracement levels.

In summary, ZCash has seen an extraordinary rally but the recent sharp drop shows the market is in a retracement phase. Traders can still keep a long-term bullish outlook if the key Fibonacci levels hold, especially around two hundred dollars. At the same time, caution is needed as Bitcoin appears to be entering a bear market and short-term losses for ZCash are likely. Investors should be careful about holding large positions until the market shows signs of a new uptrend.
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