Zcash Price, Wyckoff Theory, and Crash: A Perfect Storm?

Zcash (ZEC) has seen dramatic price swings. Is the Wyckoff Theory predicting a crash, or can ZEC maintain its bullish momentum and hit $300?

Zcash Price, Wyckoff Theory, and Crash: A Perfect Storm?

Zcash (ZEC) has been making waves in the crypto world, but can it maintain its bullish momentum?

Zcash's Wild Ride

Zcash price resumed its uptrend today, Oct. 15, as investors bought the recent dip and the recent bull run continued. The ZEC token jumped to a high of $265, up 25% from its lowest point this week and 680% above its lowest level in September. This rebound helped to boost the performance of other privacy coins like Dash, Reserve Rights, Monero.

Zcash's recent performance is impressive, outperforming the broader crypto market. It even formed a four-year high of $298 on Saturday, recovering strongly from a crash to $149 recorded during Friday’s market crash. However, it has dipped since then and is currently trading at $249 per coin.

The Wyckoff Theory: A Crash Incoming?

But hold on a minute! The Wyckoff Theory suggests a potential ZEC price crash is looming. According to this analysis, ZEC has been in a consolidation phase since January, followed by a markup phase in late September. Now, signs indicate a distribution phase, where smart money starts selling.

The daily chart shows ZEC inside a narrow range between $28.94 and $56.13. The token has moved to the overshoot level of the Murrey Math Lines, and the Relative Strength Index is overbought. A double-bottom pattern at $295 with a neckline at $215 adds to the bearish outlook. If the downtrend resumes, $125 is the next key level to watch.

Bullish Signs Remain

Despite the crash warnings, some indicators are still bullish. The Open Interest is recovering, suggesting renewed retail interest. The ZEC/USD 4-hour chart is bullish, with a 5% increase in value over the last 24 hours. Closing above the 61.8% Fibonacci retracement level of $235 opens the door to challenge the $300 resistance. A rally could even push ZEC to $320 for the first time since May 2021.

However, a bearish close below $235 could send the price down to $200, with a further drop threatening the $193 support level.

Final Thoughts: To the Moon or Bust?

So, what's the verdict? Is Zcash heading for a crash, or can it break through $300? The conflicting signals make it a tough call. The Wyckoff Theory raises a red flag, but bullish momentum persists. Ultimately, it's up to the market to decide. Will Zcash defy the odds and keep climbing, or will the bears take over? Only time will tell. Whatever happens, it's gonna be a wild ride, baby!