Zcash (ZEC) Surges 11% Amid Strong Accumulation, Eyes $50 Breakout

• Zcash price showing extreme bullishness on the daily technical chart.
• ZEC price surged by almost 11% in last 24 hours suggesting buyers dominance.

Zcash (ZEC) is exhibiting interesting technical pattern on the daily technical chart preparing for a robust comeback. As per the CMC data, the altcoin is trading at around $42.14 with a strong bullish run over the last 24 hours that has seen it gain a strong 11%.

The daily chart shows that ZEC has been trading in a bearish grash over the past few months. Meanwhile, the price action repeatedly hitting the long-term resistance trendline that has been limiting price gains since the May highs around the $55 mark. This technical pattern is usually a sign of accumulation. After this finally Zec price break above the long term resistance line and the current market dynamics are pointing to the possibility of ZEC being in the process of a fresh bullish rally.

In a moving average outlook, the price is trading at levels that are critical because the 200-day EMA at $40.58 is the immediate support level, followed by the 50-day EMA at $39.61. The close distance between these two key moving averages forms a powerful confluence area that may serve as a strong support. The recent price rally has taken ZEC beyond both EMAs signalling a short-term change in sentiment, which is now bullish.

What Next For Zcash Price?

Source: TradingviewThere are several technical indicators that are lining up to back this bullish argument. The RSI has entered positive territory, indicating an increase in the buying pressure and a change in momentum in the direction of oversold conditions

The ZEC MACD indicator has just crossed above the zero line with the signal line crossing above the zero line as well, which is a confirmation of the change in momentum and a signal that further upward movement may be possible. Also, the Supertrend indicator has turned green, another indicator of the developing bullish trend.

The most important support area is at $40.57, where the 200-day EMA is located, and it is a critical level that should not be broken. In the event that ZEC manages to sustain at the current levels, the next area of interest would be the $50 mark, which would present a potential upside of about 23%.

Risk management is essential because a decline below the support of $40.57 would negate this bullish pattern and allow the pair to continue moving lower. Nonetheless, several technical indicators are currently trending in the right direction, and recent price action has been bullish, leading to ZEC being in a good position to start a bullish rally.

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