ZCash(ZEC/USD) Update 01/07/2017: Testing Support, Lets See If Its Breaks or Launch!!!!!!!

ZEC or ZCash has also been in correction like other digital currencies or cryptocurrencies. ZEC registered its high at $449.99 on 16/06/2017 and since then it has been declining and right now it is trading at $285.9. Before going further with analysis, lets takes overview of ZCASH first:

Zcash is a decentralized and open-source cryptocurrency that offers privacy and selective transparency of transactions. Zcash payments are published on a public blockchain, but the sender, recipient, and amount of a transaction remain private. For further info click: https://z.cash/technology/index.html

Now, lets take a quick glance on chart below.......

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In chart above their are few points to take note of, which are as follows:-

1. Descending Channel: Highlighted area in chart above is descending or falling channel and one clearly notice that how after hitting high of  $449.9 has been falling and in process hitting lower highs and lower lows thus forming descending channel.
2. Supports lines: These are horizontal lines on charts which are marked as Support 1, 2, and 3 and are at $284.4, $227.24 and $109.72 level respectively.  ZEC has been testing Support 1($284.4) recently which is a third attempt in last four days.
3. 50 Days EMA: This moving average is a red wavy line on chart above and is at $271.37 level. After support 1 this moving average is providing support to falling zcash prices and it is a good support and i don't think it will be easily breached if support 1 level of $284.4 failed to hold ZEC falling prices.
4. Long Green Candle: This candle was formed on 27/06/2017 which is four day back and this candle shows how bulls took charge that day. ZEC  opened just above lower trendline of falling channel , breaks it to test another support of 50 day EMA, then quickly recovered and touched upper trendline of falling channel and settled itself at $344 level. Now this movement was backed by higher volumes which was sign of stronger hand that day and one can easily notice that though prices are falling after that day, but volumes are very less, which shows bulls are just on sidelines and only weaker bears are operating the prices. 

Now the conclusion 

In conclusion i must say their is strong chance of  pullback from correction in prices. However, ZEC may attempt to test 50 Days EMA again , but i think that will be good opportunity to play for rebound in prices. This play is strictly for trader as investors should wait and watch for ZEC prices to settled down and if Prices stays above upper trendline  of falling channel for two day, investor or long term investor may initiate their fresh buy.   

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