Zcash (ZEC), a privacy-centric cryptocurrency, has surged past a major supply region after consolidating since the beginning of February. ZEC’s price pumped to $45.80 on HTX crypto exchange. That’s the highest level since January 26th. This breakout is increasingly looking like a market-pivoting move following several months of consolidation.
Roughly six weeks’ worth of trading saw sellers consistently win out over ZEC $40 resistance, and buyers stepping in at $25 support on every drop. This price action ranged ZEC in an extremely tight range, leaving both bulls and bears exasperated.
More recently, buyers were able to finally drive the price above the decades-long supply area of $40-$43, showing the market is back in buying mode to a degree. If this momentum continued, ZEC would be in for more upside.
As noted in a daily technical analysis by CoinDesk analyst Omkar Godbole support for ZEC is now at around $25. Godbole, Co-Managing Editor on CoinDesk's Markets team, is based in Mumbai and holds a master's degree in Finance. He is a Chartered Market Technician (CMT) member.
The $40-$43 range is home to a very important, long-standing area of resistance. This has been the region to limit ZEC’s price by the most in history.
The breakout above this zone suggests that buyers have absorbed the selling pressure, potentially paving the way for further gains. Anything less could see a quick drop back down to test the $25 support again.
