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Zcash [ZEC]: Breaking down the potential effects of the current bearish structure

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Zcash [ZEC]: Breaking down the potential effects of the current bearish structure

As the basis line (green) of the Bollinger Bands (BB) constricted the revival attempts for nearly seven weeks, Zcash [ZEC] bears pulled the altcoin down to yearly lows last week. The basis line has crippled the buyers’ ability to sustain a close near the upper band of the BB.

With the current rising wedge setup being solid, a recovery toward the $113-level could see a slowdown. At press time, ZEC traded at $103.9, down by 2.63% in the last 24 hours.

ZEC Daily Chart

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Source: TradingView, ZEC/USDT

Since its multi-month April highs, ZEC bears have persistently steered the price south after propelling an up-channel breakdown. On its way down, the price action underwent strong liquidations whilst the basis line of the BB constricted the bullish comebacks.

Consequently, the alt was down by nearly 67.42% (from 28 Mar) and dropped to hit its 16-month low on 12 May. After the $83-baseline posed some hurdles for the sellers, the bulls quickly provoked a short-term string of green candles. After forming a morning star candlestick pattern, the altcoin continued its oscillation in a bearish rising wedge. 

A continued trajectory in the current pattern could face strong barriers in the $113-zone. This area represented a host of barriers that includes the upper fence of the Pitchfork, the 38.2% Fiboancci resistance. Any reversal from this zone could result in a breakout from the wedge and find testing grounds in the $96-zone. In an unlikely event of invalidating the strong bearish tendencies, any close above the $113-level could test the $126-level.

Rationale

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The Relative Strength Index depicted a gradual uptrend from its oversold lows. As far as the 41-support stood strong, the buyers still had conceivable means to stall the near-term liquidations. But with the -DI line looking north, keeping a check on the selling pressure could be a menacing task for the bulls.

Conclusion

In light of the confluence of multiple hurdles in the $113-zone, ZEC could see a short-term pullback. Any close below the wedge could result in a pathway to its $96-zone lows. To alter the existing narrative, the bulls have to find a spot beyond its Pitchfork and the 38.2% level.

Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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MATIC- Attack on network component but exchange outflows high, here’s why

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MATIC- Attack on network component but exchange outflows high, here’s why

Polygon’s MATIC token concluded the month of June with a 30% bearish correction. The token has kicked off July with the same bearish energy and may potentially seek more downside due to a network attack.

The Polygon network’s latest update on 1 July revealed that its public RPC gateway offered by Ankr experienced a DNS hijack. The attack reportedly compromised control over some services on the Polygon network. One of the latest updates confirmed that the Polygon PoS network was not affected by the attack.

Ankr is currently working to restore its Polygon RPC’s domain functionality that cannot be accessed. Wallet users and dapp partners may be affected. We will continue to post updates here as they become available.

This DOES NOT affect the Polygon PoS chain.

[2/2]

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— Polygon – MATIC 💚 (@0xPolygon) July 1, 2022

Network attacks or downtime have historically had a negative impact on a network’s native cryptocurrency. That being said, MATIC may be due for more downside if the same premise holds true.

MATIC’s long-term price action has been trading within a falling wedge pattern. However, its latest rally which started on 19 June kicked off before the price interacted with its support level.

Source: TradingView

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A closer look at its price action reveals that the rally started after the Relative Strength Index (RSI) dipped into oversold territory. However, the Money Flow Index (MFI) stood just below neutral 50 headed upwards hinting towards some accumulation of the token.

The latest retracement started after an 80% uptick. MATIC still has some ground to cover before reaching the oversold territory once again.

Can the bulls reclaim their dominance?

MATIC’s exchange flows reveal an interesting observation in the last two days. Exchange inflows peaked at 1.52 million on 30 June while exchange outflows on the same day peaked at 10.27 million.

Exchange inflows on 1 July stood at 2.23 million while exchange outflows during the same trading session were at 10.99 million. This means the exchange outflows outweighed the inflows in the last two days.

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Source: Santiment

The higher exchange outflows align with observations of reduced sell-offs from address balances. Supply distribution by the balance on addresses points toward the likelihood of a bullish uptick as addresses with large balances start buying.

For example, addresses holding  between one million and 10 million MATIC coins increased their balances from 9.48% ton 30 June to 9.68% at press time.

Source: Santiment

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Furthermore, addresses holding between 100,000 MATIC and one million MATIC dropped from 1.84% on 30 June to 1.79% on 2 July. Addresses with more than 10 million coins dropped from 86% to 85.82% during the same period. This explains why there is still some selling pressure despite higher exchange outflows than inflows.

The slight uptick in some address balances also reflects the overall uptick recorded by the supply held by top addresses metric in the last five days. The probability of MATIC’s bullish recovery is further supported by the strong network growth that the Polygon network achieved in the last 30 days.

Source: Santiment

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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Solana [SOL]: Rebound from median of Pitchfork can open doorways for…

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Solana [SOL]: Rebound from median of Pitchfork can open doorways for…

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Solana’s [SOL] recent drop below its 38.2% Fibonacci support provoked a robust decline toward the 61.8% level. The two-week trendline support (white, dashed) cushioned the recent retracements in the four-hour timeframe.

A rebound from the median (red) of Pitchfork can open doorways for a near-term jump before the sellers step in. At press time, SOL was trading at $32.1975.

SOL 4-hour Chart

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Source: TradingView, SOL/USD

SOL’s reversal from the $42-mark has pulled the alt below its 20 EMA (red) and the 50 EMA (cyan). The convincing bearish crossover of these EMAs has also impaired the near-term buying comeback possibility.

The immediate trendline support could aid buyers in preventing further drawdowns. A compelling close above the 61.8% level could help the buyers gain thrust to test the $34-$35 range.

However, an immediate close below the $31-level could aggravate the current selling spree toward the $30-zone before a likely pullback.

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Source: TradingView, SOL/USD

The Relative Strength Index (RSI) failed to find a spot beyond the 40-mark resistance in the last few days. Given its south-looking tendencies, buyers still have a long way to alter the broader outlook in their favor.

Nevertheless, the On Balance Volume (OBV)’s lower troughs over the last day have created the possibility of a bullish divergence with price. Also, traders/investors must watch for a strong crossover on the MACD to determine the near-term comeback possibility.

SOL Daily Chart

On a relatively longer timeframe, SOL saw a breakdown from its up-channel (white). This fall led to a decline below the basis line (green) of the Bollinger Bands (BB) and reaffirmed the strong bearish outlook.

A sustained close below the 61.8% level could propel a downfall toward the $28-$31 range in the coming days. An inability of the buyers to test the $34-zone would fuel the ongoing bearish tendencies.

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Conclusion

In view of the confluence of support in the $31-zone, SOL could propel a test of the $34-$35 range in the near term. But from a longer perspective, the bears would aim to push toward the $30-zone unless the buyers amplify the buying pressure. The targets would remain the same as mentioned above.

Finally, investors/traders must keep a close eye on Bitcoin’s [BTC] movement to determine its effects on the broader sentiment.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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ApeCoin [APE] traders willing to go short can make most of this pattern

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ApeCoin [APE] traders willing to go short can make most of this pattern

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Since attaining its all-time high (ATH) on 28 April 2022, the ApeCoin [APE] selling spree has kept the alt below its daily 20 EMA (red) and the 50 EMA (cyan). The recent streak of higher troughs and peaks registered a decent recovery. But the bears continued to display a robust rejection of higher prices.

While a bearish flag setup flares up on the chart, sellers could extend the bearish phase in the coming sessions. At press time, APE traded at $4.4223, up by 4.12% in the last 24 hours.

APE Daily Chart

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Source: TradingView, APE/USDT

Since taking a U-turn from the $27.6-resistance, APE has consistently registered lower peaks over the last two months. After recording an 88% decline from its April highs, APE was down to find an all-time low of $3.0661 on 15 June. Post this, the alt marked a rather bouncy recovery on the chart.

For over two weeks now, APE saw a bearish flag and pole in the daily timeframe. With the 20 EMA constricting the buying efforts, a compelling close below the current pattern can expose the alt to downside risk.

To top it up, the volume trend was plunging during the formation of the flag pattern. This pattern generally performs well in such a declining volume trend.

A sustained close below the flag could aid the bearish efforts in retesting the $3.3-support. Post which, buyers would strive to refrain the sellers from finding fresher all-time lows. A continued pattern oscillation would likely see a reversal from the $5.6-zone.

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Rationale

Source: TradingView, APE/USDT

The Relative Strength Index (RSI) has been hovering around in the bearish zone for two months now. A break below the 42-level could aid the selling endeavors to retest the $3.3-level.

Further, the Chaikin Money Flow (CMF) blended with the bearish outlook. Investors/traders should watch out for a potential break above this level to detect any bearish invalidations.

Conclusion

Looking at the bearish flag and pole setup alongside the price action falling below the 20/50 EMA, APE could see a patterned breakdown. The targets would remain the same as above.

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Finally, investors/traders should factor in broader market sentiment and on-chain developments to make a profitable move.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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