ZECUSD pops to highest close since October 12th
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZECUSD finished Saturday at 72.61 surging $9.38 (14.83%) on high volume. This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on November 6th, ZECUSD actually lost -6.80% on the following trading day. Today's close at 72.61 marks the highest recorded closing price since October 12th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 65.88, the cryptocurrency confirmed its breakout through the previous session high after trading up to $7.12 above it intraday.
Daily Candlestick Chart (ZECUSD as at Nov 21, 2020):
Saturday's trading range has been $9.82 (15.53%), that's far above the last trading month's daily average range of $5.71. 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 higher than usual for ZECUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 100-day moving average at 64.82. Prices are trading close to the key technical resistance level at 75.65 (R1). After having been unable to move lower than 62.42 in the prior session, ZCash found buyers again around the same price level today at 63.18.
Crossing above the upper Bollinger Band for the first time since November 13th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 61.13 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test October's close-by high at 75.65.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/USD. Out of 162 times, ZECUSD closed lower 60.49% of the time on the next trading day after the market condition occurred.