On Thursday, February 12, Zcash (ZEC) is trading at $236. It recorded an increase of 4.04% in the past day. The trading volume has also gone up by 37.58% to $410.3 million, according to CoinMarketCap.
Despite the positive performance on the last day, ZEC has recorded a decline of 3.26% over the last week as the price volatility increased around the critical support point.
Source: CoinMarketCap
ZEC’s Wedge and Range Patterns Emerge
Analyst CryptoPulse highlighted that ZEC has formed a pattern of trading within a falling wedge in the long term and has also formed a consolidation range between $219.3 and $255 in the short term.
The ZEC has bounced off the lower end of the wedge on higher timeframes. According to the analyst, the cryptocurrency has formed a rectangle pattern on lower timeframes.
While the lower end of the trading zone is supported at $219.3, the upper end of the zone has maintained resistance at $255. This pattern has also formed a rally-base-rally pattern, which has to be confirmed before the price starts to move upwards.
Source: X
ZEC has the potential to trade to the boundary of the channel, which is around $340 in case of an upward breakout of the identified trading zone.
Moreover, another analyst, Ardi, has mentioned that ZEC is currently forming a base in the $230 region, as the cryptocurrency has formed six consecutive doji and spinning top candles on the daily chart.
The analyst further added, “The ZEC price may try to make a move towards the $300 mark if it gains enough momentum.” This will be a test for the token to see if it can approach a neutral chart position.
However, it is important to note that if the support base is broken, the token price may dip further into the $130-$160 zone.
Source: X
Also Read: Zcash Faces Pressure: Will ZEC Reclaim $330 or Slide to $140 Support?
Derivatives Volume and Open Interest Surge
According to CoinGlass data, the trading volume has increased by 35.16%, reaching a volume of $1.20 billion. However, the open interest increased by 6.97%, reaching a value of $345.29 million. The OI-weighted funding rate is at 0.0076%.
Source: CoinGlass
EMAs and Bollinger Bands Signal Tightening ZEC Trend
The trend indicators have shown that the coin price is still under pressure. The 20-day Exponential Moving Average (EMA) is at 283.74, and the 50-day EMA is at 344.29.
The 100-day exponential moving average is at 354.99, and the 200-day EMA is at 298.38. The token is still below all four EMAs, which means that the bulls have to take control of the trend zones.
The Bollinger Bands (BB) have shown the volatility of the token price. The middle band is based on the 20-Day Simple Moving Average, which is at 291.32.
The upper band is at 405.76, and the lower band is at 176.87. The coin is still within the lower half of the band, which is showing a tightening price action.
Source: TradingView
The ZEC is holding a narrow base, and its next move will be important to determine its medium-term trend. The market conditions have shown that the volatility expansion is approaching.
