Zcash exhausted its momentum after surging for 7-days straight. The price seems ready to nosedive but let’s take a closer look first at the Zcash price news today.
Zcash increased over 25% in the past week after two-crypto forensics platforms added support for the altcoin. The sudden upswing was accompanied by an increase in the number of social interactions around the cryptocurrency. Thanks to this, ZEC gained attention but it turned out to be trouble for the asset’s short-term price action. After making 25% gains over the past week, Zcash exhausted the momentum and the bullish social media chatter around the project slows down.
Zcash has been on a roll over the past week and increased by 25%. The sudden price swing seems to have been triggered after Elliptic and Chainalysis announced support for the privacy-oriented token in their compliance products. After the announcement, ZEC went from trading at $54 to a new high of $64. The data from LunarCRUSH shows the social engagement for Zcash has been picking up since the news emerged. The spikes in the fundamental metrics seem to be manifesting into higher prices.
The first important spike in ZEC’s social engagement metrics happened on July 6th with more than 1.65 million engagements on the same day. However, the social activity around the altcoin increased three days later and registered more than 4 million engagements. About 62% of the social interactions were bullish about Zcash in the past seven days. The increase in ZEC-mentions across different social media platforms can be a concerning factor for the short-term price action. Usually, when a market participant pays attention to a cryptocurrency because of a pump, it will lead to correction for sure.
The TD sequential indicator added credence to the bearish outlook and the index presented a selling signal in the form of a green nine candlestick on the 4-hour chart. The bearish formation estimated a one to four candlestick correction at the start of the new downward countdown. An increase in the selling pressure behind Zcash could send the price down to the $49-57 support level. IntoTheBlock’s GIOM model shows that more than 56000 addressed purchased more than 3.7 million ZEC. The robust supply could have the ability to prevent Zcash from further losses. It’s worth mentioning that a green two candlestick trading above the preceding green one candle which could invalidate the selling signal.
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