$ZEC Fell on heavy volume to a 30-day low—is the selling pressure really exhausted?
ZEC’s trading volume this week is still 1.6 times the average of the previous 20 trading days. It’s been driven down to the bottom of the range, yet volume is still this high—the selling pressure hasn’t run its course. I’m inclined to think it will test lower once more.
Today, overseas media are discussing whether 1000 has been breached and whether the retracement level can hold. Round numbers have no structural significance on their own.
Looking at the 30-day high and low, the current price is just 2.8% above 930, placing it in the bottom 6% of that range. This sell-off has already entered the final testing zone.
The daily MACD made a bearish crossover three days ago. DIF is below DEA, and the green histogram is now on its fourth bar, with each bar longer than the last. The decline is still gaining strength.
The 20-day moving average is at 1211, and its five-day slope is still pointing down. Before a rebound reaches the moving average, we need to see the green bars start to shrink.
The funding rate is still positive, so longs are paying. Open interest has fallen over the past seven days, meaning leverage is unwinding, but the long/short account ratio has risen instead of falling. There are more and more long accounts, yet the price is falling—this crowded side is vulnerable to a squeeze in the opposite direction.
Starting November 16, there will also be a vote on removing 50,000 ZEC from the grant treasury. That affects medium-term supply; it doesn’t explain today’s bearish candle.
First, 930. If volume contracts and the green bars shrink there, then the selling may be over. If volume stays this high, it’s just passing through.
#zec
ZEC’s trading volume this week is still 1.6 times the average of the previous 20 trading days. It’s been driven down to the bottom of the range, yet volume is still this high—the selling pressure hasn’t run its course. I’m inclined to think it will test lower once more.
Today, overseas media are discussing whether 1000 has been breached and whether the retracement level can hold. Round numbers have no structural significance on their own.
Looking at the 30-day high and low, the current price is just 2.8% above 930, placing it in the bottom 6% of that range. This sell-off has already entered the final testing zone.
The daily MACD made a bearish crossover three days ago. DIF is below DEA, and the green histogram is now on its fourth bar, with each bar longer than the last. The decline is still gaining strength.
The 20-day moving average is at 1211, and its five-day slope is still pointing down. Before a rebound reaches the moving average, we need to see the green bars start to shrink.
The funding rate is still positive, so longs are paying. Open interest has fallen over the past seven days, meaning leverage is unwinding, but the long/short account ratio has risen instead of falling. There are more and more long accounts, yet the price is falling—this crowded side is vulnerable to a squeeze in the opposite direction.
Starting November 16, there will also be a vote on removing 50,000 ZEC from the grant treasury. That affects medium-term supply; it doesn’t explain today’s bearish candle.
First, 930. If volume contracts and the green bars shrink there, then the selling may be over. If volume stays this high, it’s just passing through.
#zec