Z Cash takes off!

Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users. Recently the cryptocurrency has surged in price with a strong increase in trading activity. We will take a deeper dive into the technical analysis behind the cryptocurrency.

Arnaud Legoux Moving Average

The Arnaud Legoux moving average in my opinion is the king of all the moving averages for two primary reasons it is highly responsive to movements in the tread and it is also a-lot does a better job at smoothing out a tread. This was a common draw back investors were having with traditional moving averages. Only made in 2009 the Arnaud Legoux moving average is new to the moving average family but insanely effective, as it is swifter eliminating the price lag that is often associated with moving averages. The fundamentals of the moving average remain the same however if the cryptoprice in blue line moves above the Arnaud Legoux moving average in the red line it highlights a bullish trend is occurring indicating prices may continue to rise into the future. This is the case with Zcash as we can see the cypto price has stared to cross the Arnaud Legoux moving average.

Balance of Power

The Balance of power indicator is very simple when the line is above 0 it indicates that buyers have dominance over sellers and when it is below 0 it indicates that sellers have dominance over buyers. The indicator moves between 1 at the very highest and -1 at the very lowest the indicator tracks how strongly price trades to extreme high and low levels. The Reading Zcash has is .92 which indicates buyers are strongly dominating the sellers in the market pointing to the conclusion that Zcash price is in a strong up trend.

Volume

There is clearly an increase in Volume highlighted by the vertical bars underneath the chart. Showing that trading activity among investors is increasing which normally means that there is more interest among investors to buy. With a higher than average trading activity the volatility of Zcash is likely to increase as well as a likely increase in the value of the cryptocurrency .

Subscribe

Leave a Reply