Zcash Bulls Face Bearish Signals as Price Surges to New Heights
Zcash (ZEC) has become a crypto sensation in recent times, reaching new heights of $1,200 for the first time since 2016 and gaining a staggering 2,450% in value on a yearly scale.
The launch of Grayscale's ZEC ETF is one major factor behind this spectacular surge. However, certain warning signs indicate that the asset's price may be due for a correction.
One such signal comes from the TD Sequential indicator, which has flashed a sell signal on the 3-day chart. According to analyst Ali Martinez, this setup previously resulted in a 64% price drop.
The Relative Strength Index (RSI) of ZEC has also surged past 70, indicating that the token is overbought and may be gearing up for a pullback. Additionally, investors have been shifting from self-custody to crypto exchanges, increasing immediate selling pressure.