ZEC is currently trading slightly above its long-term $52.50 support level. The price had previously broken out from this level but has now returned to validate it for the second time.
ZEC Signals Bearish
While this appears to be a common double-bottom pattern, technical indicators are bearish. The Stochastic oscillator has made a bearish cross, the RSI is below 50, and the MACD is at risk of turning negative.
A breakdown from the support area would likely trigger a very sharp drop.
The closest long-term resistance level that has been validated more than once is found at $110, but this level seems very unlikely to be reached anytime soon.
Cryptocurrency trader @TradingTank outlined a ZEC chart that shows a breakout from a descending wedge, as well as a path outline predicting further price action to the upside.
While the price has indeed broken out, it has not yet increased considerably from the breakout level.
In fact, the price has not yet cleared the 0.5 Fib level of the entire decrease. There is also a bearish divergence developing in the RSI, suggesting that the price might drop.
Unless ZEC is able to move above the 0.618 Fib level at $66.50 and validate it as support, the current increase is more likely to be corrective.