I’ve been staring at this $ZEC line for ages, and honestly, I’m not excited at all. That plunge to 879.6 this morning was brutal. Now it’s climbed back to 944, and the chart looks pretty strong.
But I don’t think this is a reversal. It looks more like a breather after a sharp drop. There aren’t many buyers genuinely willing to step in above the 950 hurdle; anyone chasing it up there could end up stuck holding the bag. 880 below looks like support, but it’s really quite weak, and I’m inclined to think it won’t hold.
Further down, I’m keeping an eye on 800 for now. If we’re looking for somewhere it can really find solid footing, we’ll probably have to wait until around 750. That’s where a decent rebound might be worth talking about.
The position data is telling the same story—the bears are now in the majority, and most of them are making money. By contrast, a whole lot of long positions are underwater, and some people are chasing longs after these two bullish candles, basically handing over their chips voluntarily. So with the rebound at this level, I’d rather try going short than catch this falling knife.
But I don’t think this is a reversal. It looks more like a breather after a sharp drop. There aren’t many buyers genuinely willing to step in above the 950 hurdle; anyone chasing it up there could end up stuck holding the bag. 880 below looks like support, but it’s really quite weak, and I’m inclined to think it won’t hold.
Further down, I’m keeping an eye on 800 for now. If we’re looking for somewhere it can really find solid footing, we’ll probably have to wait until around 750. That’s where a decent rebound might be worth talking about.
The position data is telling the same story—the bears are now in the majority, and most of them are making money. By contrast, a whole lot of long positions are underwater, and some people are chasing longs after these two bullish candles, basically handing over their chips voluntarily. So with the rebound at this level, I’d rather try going short than catch this falling knife.