Zcash revisiting this demand zone could signal buying opportunity

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Earlier in July, Bitcoin had a hopeful look about it on the charts. The bulls had watched BTC post higher lows at $18.8k and $19.2k two weeks into July.

To the upside, the king of crypto pushed past the $21.7k resistance to reach $24k. However, this bullish impulse of the past week was swiftly halted.

Over the weekend, Bitcoin began to bleed lower, and the rest of the altcoin market followed in its footsteps. Zcash quickly descended from $65 to $56. In doing so, it flipped the $60 level to resistance and gave the bears a huge boost. Could ZEC drop beneath its range as well?

Source: ZEC/USDT on TradingView

ZEC formed a range between $69.7 and $51.9 in late June when the high and the low were tested quickly. In doing so, a zone of demand was established at $52, highlighted in cyan. Before the formation of the range, Zcash had been in a strong downtrend.

In late May, the $76-$82 area was seen as a support zone, but ZEC crashed right past it in the selling wave in mid-June. Going back to April, this was something that ZEC had often done.

It saw strong shorter timeframe rallies, each of whom was rejected at a previous lower high on the downtrend.

The 12-hour RSI was beneath the neutral 50 line to indicate a downtrend in progress. In terms of price action, the $69.7 level was the downtrend’s significant lower high to beat to flip the longer-term market structure.

Source: ZEC/USDT on TradingView

In July, ZEC appeared to offer a good buying opportunity just above the $50 area. After a strong downward move, $52.9 was a longer-term horizontal support level that offered a low-risk buying