Zcash (ZEC) is gaining traction on Sunday, April 5, as price action and volume point to growing market interest. The coin is trading at $246.56 after a 3.95% daily rise. Strong weekly gains and rising activity are supporting a cautious bullish outlook.
According to CoinMarketCap data, trading volume has risen by 29.87% to $267.37 million. Over the past week, ZEC has appreciated by 13.71%. The persistent growth can be attributed to positive sentiment towards the privacy coin and the entire cryptocurrency market.
Also Read: Zcash (ZEC) Price Strengthens as Volume Climbs 31%, Eyeing $300 Breakout
ZEC Forms Bullish Structure
Bit Bull, a crypto analyst, highlighted that ZEC is forming an inverse head and shoulders formation. Currently, both the head and the right shoulder are under development.
An inverse head and shoulders formation usually indicates a bullish trend reversal. A break above the formation may see the price of ZEC reach $276.
On the daily chart, the ZEC is seen to have broken out from a falling wedge formation. This technical formation typically signals a bullish momentum. Nevertheless, the asset is currently rejected from a supply zone in a lower time frame.
Moreover, another analyst, Alpha Crypto Signal, mentioned a formation of a symmetrical triangle at lower time frames. In this pattern, the price gets compressed between two converging trend lines. This type of formation reflects consolidation and low volatility. It often leads to a breakout once pressure builds.
A breakout above the upper trend line can bring about a bullish continuation, but volume will confirm it. Before this happens, ZEC is trading within the boundaries of a triangle range pattern. Traders are waiting for a clear directional move before entering positions.
Volume Surge Signals Bullish Sentiment
According to CoinGlass data, derivative volume has skyrocketed by 87.62% to $879.60 million. In addition, open interest has climbed by 7.43% to $440.50 million. The OI-weighted funding rate is 0.0034%, showing a slight long bias.
RSI and MACD Point to Strengthening Trend
According to TradingView data, the Relative Strength Index (RSI) stands at 54.95. The current value is above the neutral 50 mark. It denotes positive buying pressure but not yet reaching an overbought situation. The RSI moving average is near 50.05, indicating stable trend strength.
The Moving Average Convergence Divergence (MACD) indicates bullish signs. The MACD line has climbed to 3.19, higher than the signal line of 2.38. The histogram figure is -0.82, suggesting fading bearish momentum.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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