The price of Zcash (ZEC) is showing signs of a potential restart to its uptrend. Despite a slight dip today, Zcash (ZEC) technical analysis reveals that selling pressure has plummeted. Data from Coinglass shows that inflows to exchanges fell by 85% in just two days.
ZEC is trading near $502, down 2.2% on the day. However, this comes after an astonishing 1278% gain over the last three months. The price formed a “falling flag” pattern, which is typically a corrective pattern. Net selling flows on exchanges peaked at $38.91 million on November 12. As of today, that figure has dropped to just $5.81 million.
Is Zcash Preparing for the Next Phase of Its Rally?
This drastic reduction in selling is vital, as it suggests that sellers are losing interest after the initial rally. Furthermore, technical indicators support a continuation. The Relative Strength Index (RSI) formed a hidden bullish divergence between October 22 and November 7. This occurs when the price makes a higher low, but the RSI makes a lower low, indicating the main uptrend’s momentum remains intact.
Likewise, the On-Balance Volume (OBV) also broke its descending trendline. Nonetheless, the OBV has flattened near 8.16 million. Buyers are not yet aggressive, but the resistance against the price is much lower. Attention is now focused on the $537 level. A daily close above this resistance would confirm the breakout from the flag pattern.
A successful close above the $537-$538 level would open the path to bullish targets. Analysts are pointing to $612 and $688 as the next goals, with the potential to go higher. Conversely, a immediate support sits at $488. A drop below $368 would invalidate this bullish structure. The battle between buyers and sellers of cryptocurrencies will be decided at these key levels.
