ZECUSD finds support at 200-day moving average
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZECUSD finished Monday at 60.40 losing $2.33 (-3.71%). Closing below Sunday's low at 62.15, ZEC/USD confirmed its breakout through the prior session low after trading up to $3.48 below it intraday.
Daily Candlestick Chart (ZECUSD as at Oct 26, 2020):
Monday's trading range has been $5.09 (8.11%), that's slightly above the last trading month's daily average range of $4.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZECUSD.
After trading as low as 58.67 during the day, the cryptocurrency found support at the 200-day moving average at 59.07. ZCash closed back below the 50-day moving average at 61.74 for the first time since October 20th. When this moving average was crossed below the last time on October 20th, ZECUSD actually gained 8.70% on the following trading day.
Although ZEC is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for ZEC/USD. Out of 12 times, ZECUSD closed higher 58.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 75.00% with an average market move of 17.46%.