Zcash has experienced a notable price increase over the past month, but mixed signals from the daily and weekly charts raise questions about its future price direction.

Zcash Price Surge

Zcash surged 80% in the past 30 days, emerging as one of the top gainers. This significant rally follows a recovery from a low of $15.78 on July 5. As ZEC gains momentum, traders are debating whether this uptrend can continue or if it has reached its peak, as technical indicators present mixed signals.

Zcash Eyes Double-Bottom Pattern

On the weekly chart, ZEC is close to forming a double-bottom pattern, typically a bullish signal suggesting a potential price surge. The first bottom happened in April 2024, when ZEC dropped to $17.94, and the second bottom formed on July 5 at $15.78. This pattern would be confirmed if ZEC closes above the neckline at $33.5.

A breakout above this level could propel Zcash toward resistance levels between $38 and $45.

Potential Bearish Divergence

Meanwhile, the daily chart shows a potential bearish divergence, which could signal an upcoming pullback. Since July 26, the Relative Strength Index (RSI) has been forming lower highs, despite ZEC’s price reaching higher highs.

The RSI, currently at 62.30, suggests that bullish momentum might be waning. Divergences often precede price reversals, indicating potential downward pressure. A break below the 60 level for the RSI could deepen the bearish momentum.

Fibonacci Pivot Points

On the daily chart, ZEC’s Fibonacci Pivot Points highlight crucial support and resistance levels. The pivot point at $27.73 acts as a critical support level. Should ZEC drop below this level, the next support levels are $20.84, $16.59, and $9.71.

Conversely, resistance levels are set at $34.61, $38.86, and $45.75. Currently, ZEC is trading just below the first resistance. A successful break above this level could target the second and third resistance zones, aligning with the potential continuation of the bullish trend indicated by the weekly double-bottom pattern.

Mixed Signals from MACD

The daily MACD also shows mixed signals. The MACD line is at 1.50, slightly above the signal line at 1.76, indicating bullish momentum. However, recent red bars on the histogram suggest that the momentum might be weakening. If the MACD crosses below the signal line, it could confirm a bearish trend reversal.

Overall, Zcash is at a crucial juncture. The weekly double-bottom pattern suggests a bullish outlook if ZEC can close above $33.44. However, the bearish divergence on the daily RSI and the mixed signals from the MACD highlight the risk of a potential pullback.

It is important to monitor the key support and resistance levels provided by the Fibonacci Pivot Points. Breaking above $34.61 could reignite bullish momentum, while a drop below $27.73 might signal a deeper correction, potentially leading to increased FUD.

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