Zcash (ZEC) Breaks Through Major Supply Area. What’s Next for the Privacy-Centric Cryptocurrency?

A comprehensive daily analysis by a specialized analyst and Chartered Market Technician.

The value of Zcash (ZEC), a digital currency focused on privacy, has surpassed a critical supply zone, indicating potential for further upward movement.

Since February, ZEC has remained in a sideways trading pattern, with sellers exerting control above the $40 mark. Conversely, price corrections around $25 have consistently encountered support, preventing any significant drops.

On Sunday, buyers successfully broke through the long-standing resistance level between $40 and $43, achieving a peak of $45.80 on the HTX exchange, the highest price observed since January 26.

This breakout can be compared to a spring that has been compressed and is now releasing, suggesting a bullish market sentiment after a period of accumulation. Such a release usually results in a swift and significant price increase.

According to technical analysis principles, the height of the range (the difference between the upper and lower limits) should be added to the breakout price. In the case of ZEC, this projection implies a possible price surge towards $60.

When asset prices move past established resistance points, as seen with ZEC, it often attracts the attention of traders who prefer to enter positions after a breakout. They anticipate further momentum in the upward or downward direction after the asset surpasses significant levels.

In a similar vein, Monero (XMR), another privacy-focused cryptocurrency, has recently exited a larger and more extended range, demonstrating a bullish crossover pattern, pushing its price above $300. However, it’s important to remember that chart patterns don’t always perform as expected.