Zcash volatility popped up on the announcement of Coinbase Pro’s support for this altcoin, setting the stage for ZEC trading on Coinbase.com itself later on. Price has already spiked earlier this month and again a few hours back, but the rising channel visible on the 4-hour chart remains intact.
Zcash has fallen back to support where more buying pressure could be waiting and ready to prop it back to the resistance once more. The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.
The 200 SMA also seems to have held as dynamic support as well around the spike down to the $1,200 level. In that case, Zcash could find its way back up to the $1,800 level again.
RSI is still pointing down, though, indicating that selling pressure is present and that sellers could still attempt to break below the channel. Similarly, stochastic is turning lower to signal the presence of bearish momentum. Both oscillators are edging close to the oversold region to reflect exhaustion.
On its blog post, Coinbase noted:
ZEC trading will initially be accessible for Coinbase Pro users in the US (excluding NY), UK, European Union, Canada, Singapore and Australia… Please also note that ZEC is not yet available on Coinbase.com or via our mobile apps. We will make a separate announcement when that occurs.
Zcash aims to make transactions more private than they are in the Bitcoin blockchain by having a “view key” to allow some individuals to see private information about users’ transactions. These could be used for, say, audit purposes without having to disclose access publicly.
Also, according to the blog post, Zcash trading will go through four stages, which include “transfer-only,” “post-only,” “limit-only,” and “full trading.”
Images courtesy of TradingView.