ZCash is a well-known cryptocurrency whose main characteristic is that allows its user to define the level of privacy on their transactions. Its decentralized blockchain allows its users to selectively disclose private information in the public blockchain. Zcash also provides encrypted memo fields that allow sending a message such as reference numbers or payment codes to the beneficiary of the transaction that only him can see.
Zcash is making a retracement fro the top of its short-term ascending regression channel. Now the price is in the middle of it, which corresponds to the linear regression of the prices ( dotted line). We see, also that the RSI has retraced to the middle of the range. We know that the regression line is the best predictor f future prices, and also acts as the consensus of the value for the projected period. Thus, at this moment the price is very close to the fair price, and the RSI tells that it is nor overbought nor oversold. Under this situation we can see two scenarios. The most probable is the marked by the yellow dotted arrow because we see the asset’s underlying trend is bullish and the 50- and 200-SMA may act as support for the price. but if the overall market continue weak ZCash may experience a pull towards the bottom of the channel and start the new leg up from there. The second path is less probable, and also more dangerous, as it would take the price below its two main SMAs, a situation that may push the price still further down.
Is there a potential setup? currently there is none. In the first scenario, if it happens, it does not have a sufficient Reward/risk ratio to make it a valid trade. The second scenario is still too underdeveloped, but it it becomes a reality we buyers may find an excellent Reward/Risk ratio if taking a candlestick reversal high, probably at about $42, an invalidation level below $38, and a profit target in the vicinity of $53.5.