The past 48 hours were not kind to crypto bulls, as a combined total of $953.89 million worth of long positions were liquidated.
The rebound on the 23rd of May also triggered short liquidations, marking the highest volume in three months. Amid this volatility, ZCash [ZEC] bulls have stood tall.
A breakout past the short-term range formation has put the buyers back in the driving seat. Large holders did not sell a substantial part of their holdings during the recent rally, indicating conviction in the move has not died out.
ZEC has a healthy bullish bias
The structure of the privacy token was bullish on both the 1-day and 1-week timeframes. The range formation between $504 and $613 was breached on the 20th of May.
A bearish divergence between the RSI and the price action indicated overextended market conditions. The retracement back into the $585-$600 demand zone saw a positive price reaction. Meanwhile, the CMF remained well above the +0.05 threshold to indicate steady capital inflows and buying pressure.
Together, the price action and the technical indicators showed that ZCash was ready to rally higher once more.
Traders’ call to action: Buy
The 4-hour bullish structure break recently, followed by the retracement below $600, represented a healthy pullback. The pullback might have looked like a failed breakout, but in recent hours, ZEC has made its way back above $613, the range high, once more.
At press time, the CMF was below -0.05, which was a minor worry for the bulls, but the RSI remained above neutral 50. Therefore, ZEC is expected to rally beyond $700 to the Fibonacci extension targets at $738 and $815.
Another threat to a continued ZEC uptrend was Bitcoin [BTC] volatility. BTC has a bearish short-term outlook, and a brief bounce toward $80k could be followed by deeper losses.
Hence, a ZEC drop below $486 would invalidate the buy idea.
Final Summary
- The ZCash bullish strength continued to stand out in a beleaguered crypto market.
- The privacy token’s uptrend is likely to continue despite Bitcoin’s bearish shift.