How is ZEC Defying the Crypto Market Correction? | Credit: Hameem Sarwar
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Key Takeaways
Zcash (ZEC) experienced a 300% increase in October.
The ZEC price is attempting to move above its 2021 cycle high.
Can ZEC resume its increase and reach a new all-time high?
Zcash (ZEC) has been on a tear this month, surging more than 300% in October and defying the crypto market’s weakness.
After ZEC broke key resistance levels, the privacy-focused coin is testing its 2021 cycle high, its most critical level in years.
With technical indicators still flashing strength, the question is whether ZEC has more fuel in the tank or if a pullback is on the horizon.
ZEC Price Analysis
The weekly time frame chart shows that the ZEC price has increased rapidly since bouncing off a diagonal resistance in April (green icon).
After creating a long lower wick, the ZEC price formed a higher low in August and then increased in a parabolic manner.
The ZEC price broke out from the $100 horizontal resistance area. Additionally, it did not even return to validate it as support.
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Instead, the price of Zcash continued surging and hit a high of $176 last week.
Zcash’s rally is extremely impressive, given that the crypto market suffered one of its worst-ever crashes last week, while ZEC created a bullish candlestick.
Momentum indicators do not show any weakness. Even though the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are positive, they have not generated any bearish divergences.
So, the long-term ZEC trend is bullish. Let’s examine a lower time frame to see if the same is true for the short-term movement.
Has ZEC Reached a Top?
While the weekly time frame is bullish, the daily one raises concerns. According to the technical analysis, the price of Zcash has completed an A-B-C correction (red).
The three-wave structure that creates wave A and the symmetrical triangle for wave B indicate this is the correct count.
Afterward, the breakout from the triangle confirmed that wave C has started.
The entire corrective structure might be over since wave C already has 1.61 times the length of wave A.
Nevertheless, since the price trades inside a significant horizontal and Fibonacci resistance, an initial retracement is the most likely future outlook.
Final Thoughts
ZEC’s parabolic rally has been one of the more surprising moves in the crypto space, especially against the backdrop of a massive crypto crash.
While the long-term outlook remains bullish with no significant resistance above the current range, the daily structure signals caution and the potential for a retracement.
Whether Zcash can push past its 2021 peak can determine the direction of the short-term trend.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
