A couple of days ago, I was wondering whether the rise in $ZEC c corresponded to actual demand or simply to the latest phase of a short squeeze. Today, after touching $1,297, I think it’s worth taking a new look.
From my point of view, this new uptrend is once again related to Grayscale’s Zcash ETF (ZCSH), since:
It surpassed $533 million in assets under management, $70 million more so far this week.
On September 8, the contribution from DCG International Investments of 85,705.32 ZEC to the fund was confirmed, instead of the approximately 200,000 ZEC that had been expected. This is due to the increase in the token price before the deal was liquidated.
My read on the current scenario is that ZEC is trying to consolidate an uptrend. The price has already reached the $1,290 zone, hitting $1,297$, with a fairly high probability that it will find a new resistance zone between $1,310 and $1,400.
There is also the possibility that part of this move is being driven by a short squeeze. Therefore, if we review the chart on the 1h timeframe, ZEC could again reach levels that this time could be around $1,260 and $1,100, since several FVGs have been identified in this zone that the price could test again.
Even, if we look at the 4h chart, we find a more favorable scenario for those of us who still hold short positions, since the price could move to seek the FVGs located in an approximate range between $950 and $1,020, and another one lower down between $840 and $790, thereby deepening the correction.
Personally, although I also have an open long position, in hedging mode, a correction towards those levels would be the scenario that would suit me best.
