I see some people still shouting in my comment section that #zec can rise to 700, even push up to 1000. Today, I will objectively discuss the current situation of ZEC purely from a technical perspective.
First, let's look at the moving average system. Currently, MA7 is below MA20, and MA20 is also below the medium-term moving average MA50. This is definitely a bearish arrangement, indicating that the medium-term downtrend is still dominant. The price is now rebounding to the area between MA20 and MA50, which is just a pullback in the downtrend. In the past two days, it has been pressed by the medium to long-term MA50 moving average, fluctuating around the 450 - 470 range. Whether it can break through still needs to be observed.
Let's talk about MACD. When it forms a golden cross below the zero line, it is actually a rebound signal in a downtrend. The current weekly rebound is just a sign that the short-term bearish momentum is not as strong, but it doesn't mean that bullish strength has increased. In the medium to long term, the bears still have the upper hand.
Then look at the Bollinger Bands. The current price is above the middle band at 425, but the resistance at the upper band is particularly strong. At the current rate of decline, the upper band could reach around 500 next week. At that time, 500 - 550 will be a strong resistance level. This area was previously a key support level, and now that it has broken down, it has become a dense area of trapped funds. It will be very difficult to break through this area in the short term, and the weekly rebound is likely to encounter this area and fail to rise further, then turn down.
There is also trading volume. Recently, during the rebound, the trading volume has been shrinking, which is a typical case of rising without volume, showing a divergence between price and volume. Without incremental funds supporting the rise, it is just existing funds being manipulated, or like me, increasing short positions. The foundation of the rebound is not solid, and without incremental funds coming in, it is very difficult to reverse.
#zec After plummeting from the historical high of 775, the long-term upward trend has been completely destroyed. The current weekly rebound is just a technical recovery after a bear market. Based on my previous judgment on Bitcoin's future, if $ZEC cannot break through strongly with volume and cannot stabilize in the strong resistance area of 500 - 550, then after this weekly rebound ends, the market is likely to enter a new round of major decline. In terms of operation, there was no transaction above 470 yesterday, so I will continue to hold and wait for the end of the weekly rebound.
The market has experienced a sharp decline, and blood is flowing in the streets. I will prepare some strong coins suitable for bottom fishing as a recovery plan. Brothers and sisters who want to follow the strategy can scan the code below to enter the chat room.
