ZECUSD pushes through Friday's high
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZECUSD ended Saturday at 89.49 surging $14.66 (19.59%) on high volume. This is the biggest single-day gain in over a year. Today's close at 89.49 marks the highest recorded closing price since July 12, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 74.96, the market confirmed its breakout through the prior session high after trading up to $19.81 above it intraday.
Daily Candlestick Chart (ZECUSD as at Aug 01, 2020):
Saturday's trading range has been $20.65 (27.6%), that's far above the last trading month's daily average range of $4.33. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ZECUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 74.12 earlier during the day, ZCash bounced off the key technical support level at 74.27 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 26th, ZECUSD gained 6.77% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 65.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/USD. Out of 8 times, ZECUSD closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 87.50% with an average market move of -26.36%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been DOGEUSD surging 15.6% and ZECBTC closing 14.67% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more