ZCash was previously consolidating inside a symmetrical triangle with its higher lows and lower highs. Price just made an upside breakout to signal that bulls have won over and that gains are in the works.
However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, bearish pressure is still present and there’s a chance this bullish move might be a fake out. Still, the price has moved past the 200 SMA dynamic inflection point as additional confirmation that buyers have the upper hand.
Stochastic has reached overbought levels, though, and might be turning lower to indicate a return in selling pressure while buyers take a break. RSI is on the move up to signal that buyers still have some energy left but is also closing in on the overbought zone to signal exhaustion.
ZCash has built up strong momentum leading up to its upcoming activation of the Sapling update on October 28. According to Zcash Company’s (@zcashco) tweet:
Sapling is a network upgrade that introduces significant efficiency improvements for shielded transactions that will pave the way for broad mobile, exchange and vendor adoption of Zcash shielded addresses. It would include payments for shielded addresses, decoupled spend authority, and keys.
These were highlighted by Litecoin founder Charlie Lee who said that fungibility is the one good thing that is missing from Bitcoin and present in other altcoins:
Right now, there are some altcoins that are doing a lot of privacy-related improvements like, Monero [XMR] with RingCT, Zcash [ZEC] & Tezos [XZT]. New innovative technology is turning blockchain upside down.
In any case, do watch out for additional volatility and potential profit-taking activity right around the time of the update.
Images courtesy of TradingView