Zcash (ZEC) Price Breaks Out of Range, Targeting $60

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole. Prices for privacy-protecting digital currency Zcash (ZEC) have moved past a key resistance or supply zone, hinting at bigger gains ahead.

Privacy-protecting digital currency Zcash (ZEC) price broke through a key resistance or supply zone, which could open the door for more gains.

Since February, ZEC has traded sideways, with sellers stepping in above $40. Meanwhile, dips encountered support at around $25, keeping the cryptocurrency confined to a narrow trading range.

On Sunday, buyers finally managed to push through the persistently sticky supply zone at $40-$43, with ZEC reaching highs of $43.80 on crypto exchange HTX. These levels were last seen on Jan. 26, according to cryptocurrency market data provider TradingView.

The so-called range breakout is like a spring uncoiling bullishly after building up demand during consolidation. This release of stored energy often results in a sharp, rapid move higher.

Technical analysis theory suggests adding the range width, or the spread between the upper and lower range boundaries, to the breakout point. In ZEC's case, the measured move method points to a rally toward $60.

Breakout traders may also be tempted by price moves through long-held resistance levels, as in ZEC's case. These entities prefer to enter positions when the price of an asset moves beyond a defined support or resistance level, aiming to capitalize on a continued move higher or lower.

ZEC's peer, monero (XMR) recently broke out of a bigger and more prolonged range play with a bullish golden cross, surging to highs above $300.

Readers should note that chart patterns do not always work as intended.