Zcash price resumed its uptrend today, Oct. 15, as investors bought the recent dip and the recent bull run continued.
Summary
- Zcash price resumed its bull run as investors bought the recent dip.
- The jump happened as the assets under management in the Grayscale ZEC Fund soared.
- Data shows that the amount of Shielded ZEC tokens is soaring.
Zcash (ZEC) token jumped to a high of $265, up 25% from its lowest point this week and 680% above its lowest level in September.
This rebound helped to boost the performance of other privacy coins like Dash (DASH), Reserve Rights, Monero (XMR), which jumped by
Zcash price has done well because of the recently launched Grayscale Zcash Trust, which has achieved over $92 million in assets despite its 2.5% expense ratio.
The coin has also done well as its network has gained momentum. Data compiled by the Zcash Dashboard show that the total shielded value has jumped to a record high of 4.53 million ZEC, worth more than $1.17 billion. Shielded ZEC tokens account for about 27% of the supply.
Wyckoff Theory analysis warns of Zcash price crash
The daily time frame chart suggests that a ZEC price crash may be near. This chart shows that the token has remained inside a narrow range between the support and resistance levels at $28.94 and $56.13 since January.
This consolidation was part of the accumulation phase of the Wyckoff Theory. It is characterized by a tight consolidation and low volume over time.
The accumulation is then followed by the markup, which it entered in the last week of September. This phase is characterized by a parabolic move as demand jumps. The phase is also characterized by higher volume as traders embrace the concept of Fear of Missing Out.
It is then followed by the distribution period, where smart money starts selling. This phase is characterized by huge swings, with retail traders buying the dips.
There are signs that the token is in the distribution phase. For one, it has moved to the overshoot level of the Murrey Math Lines. The Relative Strength Index remains in overbought territory, and the token is now forming a double-bottom pattern at $295 and a neckline at $215.
Therefore, there is a likelihood that the token will resume the downtrend. If this happens, the next point to watch will be the major S&R pivot point at $125.
