Zcash, or ZEC, ranked 32 as per market capitalization, is flashing green.
The cryptocurrency’s bitcoin-denominated exchange rate is currently trading at 4261 sats on Binance, representing a 10 percent gain on a month-to-date basis.
However, it is too early to call a bearish-to-bullish trend change. ZEC is still trapped in a falling channel, as seen on the monthly chart above. The cryptocurrency topped out around 59,000 sats in February 2018.
A falling channel breakout, however, may happen next year with the battered cryptocurrency scheduled to undergo its first mining reward halving. The process is aimed at curbing inflation by reducing the reward per block mined by half every four years.
The first block was mined in late 2016 so the first halving will happen in late 2020, following which the reward per block will drop from 12.5 ZEC to 6.25 ZEC.
Essentially, miners will be adding (supplying) fewer coins to the ecosystem after late 2020 and markets may price in the impending supply cut in advance.
Put simply, ZEC may witness a pre-halving rally like litecoin. The sixth largest cryptocurrency, which underwent halving on Aug. 5, doubled in value from $30 to $60 in the first quarter of this year, despite the flat action in bitcoin, the largest cryptocurrency
Bitcoin also tends to price in the supply-cutting event in advance. In 2012 and 2016, the cryptocurrency picked up a strong bid six months ahead of the event.
The upcoming bitcoin halving, due in May 2020, has been extensively discussed over the last 12 months and many experts believe the markets priced in the event in the four months to June, when the price of a single bitcoin rose from $4,000 to $13,880.
All in all, there is a strong reason to anticipate a big move higher in ZEC.
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Off Two-Week Lows
BTC: Price: $7,180 | Market cap: $130.80 billion | 24-Hr Volume: $18 billion
Short-term trend: Minor bounce likely Bitcoin has recovered slightly from a two-week low of $7,070 hit during the Asian trading hours and could rise further to $8,330 and possibly to $8,500, as the intraday charts are reporting seller exhaustion.
Further gains will likely remain elusive as indicators on higher timeframes (daily, weekly) are still reporting strong bearish conditions.
Also, the short-term trend will turn bullish only above $7,870. That would invalidate the lower highs set up on the daily chart.
On the downside, acceptance below $7,087 (Dec. 4 low) would bolster the bearish setup on the daily chart, possibly resulting in a re-test of recent lows near $6,500.
Long-term trend: Neutral
Bitcoin's monthly MACD histogram has dropped below zero, signaling a bearish reversal. The cryptocurrency is trapped in a five-month bearish channel.
Even so, the outlook remains neutral, as the MACD is a lagging indicator. Further, the miners’ reward halving, usually a price-bullish event, is due in May 2020.
With BTC looking oversold after a 50 percent drop from June highs above $13,800, a notable recovery ahead of the supply-cutting event can’t be ruled out – more so, as the 50-week MA has crossed above the 100-week MA, confirming the first golden bull cross since May 2016.
After all, the previous bull cross had marked the start of a long-term bull market. The cryptocurrency picked up a strong bid near $430 following the bull cross confirmation in May 2016 and charted its way a record high of around $20,000 in December 2017.
That said, the outlook as per the weekly chart would turn bullish only if and when prices break higher from the five-month long bearish channel.
Read Analysis
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Making Small Waves WAVES : Price: $0.062 | MCAP: $62.9 million | 24-Hr Volume: $9.7 million
Short-term trend: Neutral Waves is currently up 13 percent over a 24-hour period and is at its highest point since Dec. 2, Messari and Binance exchange data shows.
The upward move can likely be attributed to its IDE and testing release on its mainnet, slated for Dec. 31 as well as a developer workshop based in Lagos, Nigeria, primed for Dec. 14.
Waves is a public blockchain network that enables users to create and access decentralized applications. It features on-chain governance, Formal Verification for smart contracts, and a variation of Proof-of-Stake (PoS) called Leased PoS to ensure network consensus.
The short-term trend is in jeopardy of further downside moves should it concede the hard-fought zone above $0.058 and would prove difficult for further price rises should it fail to capitalize on a move above former supports near the confluence of the sloping trend line at $0.068.
Long-term trend: Bearish
Waves has begun to show bullish promise of a small reversal in its bearish market structure, but a further moves north are required if it is to convince investors of a significant turn around in trader momentum.
As stated above, a close above the upper sloping trend line would provide greater insurance that the long-term trend is picking up bullish steam, until then price action over a larger time frame can be considered bearish.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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