These FIB Zones Can Provide Support as Zcash (ZEC) Retests $56

CryptoMode ZCash Price Surge ZEC

Zcash has traversed steady downtrends since early April sessions. The alternative token printed a high near $210 during late March, though ZEC’s higher timeframe outlook remained pessimistic since mid-April when prices plummeted beneath the $160 mark, the former support. Meanwhile, Zcash retested the value area as Resistance in April. It then created multiple lower peaks on the price chart, maintaining that trend at this publication. 

Zcash 12Hr Timeframe

However, phases of rapid surges interspersed the downward actions. For instance, mid-May saw ZEC bouncing to $116.6 from $69.5. However, the following weeks had the token on gradual bleeding, sliding towards $52.7 during this publication. 

Early sessions this month saw ZEC testing $53 – $57 as a demand region before bouncing towards $70. Nevertheless, bears emerged again, forcing the alternative token beneath the $60 level. That came as the broad crypto market witnessed a bloodbath. 

The RSI (Relative Strength Index) affirmed the declines recorded in recent weeks. The indicator could not overcome the 50-neutral and confirmed massive downside pressure on the twelve-hour chart. 

Zcash 4Hr Timeframe 

Analysts used the mentioned rebound to $116 from $69.5 to plot FIB retracement zones. Zcash has breached all the levels and retested the $70 mark as a resistance in the previous two weeks. Meanwhile, the past few days proved $70 and $62 to be massive resistance levels. 

Moreover, buyers failed to propel prices higher. As highlighted, ZEC suffered as the broad cryptocurrency market endured escalated downside. For instance, the alternative token plummeted to $52.7 from $60. That has $52.9 as support, while further footholds stood at $50, then $40.4 FIB extension zones. Meanwhile, the psychological level at $50 could prevent extended downside for some days. 

The 4hr indicators also flashed bearish tendencies for Zcash. The Relative Strength Index stayed well below the 50-neutral. Also, the Awesome Oscillator plummeted sharply under the zero mark recently. These developments confirmed the massive bearish strength behind ZEC. 

The Chaikin Money Flow swayed below the -0.05 level, indicating significant cash outflow from the market. Nevertheless, the OBV held its support from May. 

Final Thought

OBV plunging below the support and Zcash under $50 would signal more losses for the alt. Meanwhile, ZEC cash witnessed a rebound from the $40.4 FIB extension mark. Also, enthusiasts should watch the $40.4 mark. Nevertheless, a BTC downswing beneath $18.8K would translate to escalated declines for ZEC.

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