In stark contrast to the bearish behavior of the rest of the crypto market, privacy-geared cryptocurrency Zcash (ZEC) is up a mammoth 1131 percent over the past year. Despite some hiccups faced this year, the digital asset’s technical structure remains intact, as it eyes the key $490 price level.
Zcash on path to hit $490
According to a Thursday X post by seasoned crypto trader Ali Martinez, ZEC is likely to continue its new-found upward momentum. The trader shared the following 4-hour chart, remarking that ZEC has bounced from channel support, and is heading toward $490 at the top of the channel.
For the uninitiated, a price channel is a technical analysis pattern formed by two parallel trendlines that contain an asset’s price, with the lower line acting as support and the upper line acting as resistance.
Traders usually look for bounces from the lower boundary as potential buying opportunities and reactions near the upper boundary as potential profit-taking or resistance zones.
Meanwhile, fellow crypto analyst Crypto Yoda shared an even more bullish prediction. In a separate X post, the analyst shared the following chart, emphasizing that ZEC is retesting a key support level after completing a rounded top pattern.
According to the analyst, holding this support level could be key to igniting a strong rally to the next resistance level that could propel the digital asset all the way up to $580.
A rounded top is a bearish chart pattern where an asset gradually transitions from an uptrend into a slow, curved decline, indicating that buying momentum is fading and sellers are gaining control.
The pattern is typically confirmed when the price breaks below a key support level, signaling the potential start of a longer-term downtrend. However, since ZEC is now showing signs of a reversal, chances are that sellers are starting to get exhausted.
A tumultuous year for ZEC
Although ZEC has performed extraordinarily well over the past year, it did have its fair share of bottlenecks these past few months. Most notable of them was the Orchard bug that led to a 30 percent crash in the cryptocurrency.
Later, the digital also faced challenges on the build up to the highly-awaited Ironwood upgrade. However, on Tuesday, the project was successfully to finally rollout the protocol upgrade.
