It is the fourth week of the Crypto Academy Trading Competition, which enable us to implement the knowledge acquire from various professors’ lesson in our crypto trading. This is a very good initiative as it will boost our confidence in trading and our ability to take risk. For week three of this competition, I will be joining team, The Team Reminane with professor @nane15 and @reminiscence01.
Introducing the token for the day
Zcash is decentralized blockchain technology that is more focus on privacy and anonymity just like Monero. On the network, nodes verify transactions without revealing any essential and sensitive information about those transactions. This is possible because, the blockchain make use of the zk-SNARK zero-knowledge proof technology.
Zcash transactions relayed on public blockchain which by default doesn't reveal the amount sent or sending and receiving addresses. For the purpose of regulatory compliance or auditing, the network provides an option to reveal these details.
Zcash was first based on the Bitcoin's codebase when it was released on October 28, 2016 with ZEC as its native token.
Zcash was founded by cypherpunk, entrepreneur and computer expert Zooko Wilcox-O'Hearn. The platform is managed by for-profit Electronic Coin Company (ECC) founded by Zooko.
ZEC can be traded on many exchange platforms like Binance, gate.io, KuCoin, Bitstamp, Poloniex, Bitstamp, OKX, Binance TR ect. I will be trading ZEC with my Binance exchange account as it is the most popular and reliable exchange with low trading fee.
Why am I optimistic about this token today, and how long do I think it can rise?
ZEC has currently being ranked #51 from coinmarketcap and its price has recently gained a lot of appreciation in value creating trading opportunities for scalpers.
Zcash is Bitcoin fork that was based on the Bitcoin's codebase that focus on optional anonymity and allows for a level of privacy unattainable with popular pseudonymous tokens like ETH and BTC.
Zcash is more decentralized and verifies ownership of transactions and tokens more anonymously and provides strong security for users than Bitcoin.
From the screenshot above, we can clearly see that ZEC has a Circulating Supply of 14,051,581.25 ZEC, Market Cap of $2,745,432,097, ranked #51 and have a price of $196.08 at the time of writing this post.
Also, on the screenshot above We can see that ZEC has attained an all-time high price of $5,941.80 which was on Oct 29, 2016 and all time low at $18.94 on Mar 13, 2020. With regards to the current price, has an increment of 940.40% from the all-time low and 96.68% decrement from the all-time high price.
All time price chart of ZEC
ZEC has attained its all-time high price 5 years ago and still at the dip, which make at a good investment for future benefit. The coin has shown significant rise in recent days creating a lot of trading opportunities as price moves in high-highs.
How to analyze the token?
I will Analyze this coin using the ZEC/USDT crypto pair on TradingView. I have applied the Japanese candlestick chart which connect sensitive information like opening and closing price, high and low swing points. I have also added MA crossing strategy and RSI to help identify direction of trend and spot entry position.
First of all, I will be doing a scalping trade and to identify the general trend I have used different timeframes of 30 and 15 minutes.
The charts above are 30 and 15 minutes USDT chart. On both charts, we have seen that two lower points are identify and a support trendline is drawn through these points. Price rebounded on the support trendline several times and bounce upwards for bullish trend continuation. The general trend was identified to be bullish by different timeframes.
I will be doing a scalping trade so I have selected a 5-minutes timeframe of ZECUSDT chart and marked resistance and support level.
On the chart above, price formed a strong support after the previous support was broken and started moving in higher-highs pattern. The Ma crossing strategy was used to spot direction of which the 20-period (Blue) was above the 50 period (Red) indicating the presence of bullish market. With the RSI indicator, a confluence was given when the lined bridged the mid-mark upwards. My entry position was marked at this point.
To further confirmed signal, I added the Ichimoku cloud indicator to the chart.
On the same chart, Ichimoku indicator was added to confirm signal. The cloud was seen to be trading below price and formed green color along, given a confirmation to RSI and MA crossing for bullish trend and confirming my entry position. I marked a take profit level at 208.6 little above the previous resistance level and stop loss level at $191.0 just below the strong support.
On my Binance exchange, I open a spot limit order for ZEC at $196.30. Afterwards, I placed an OCO order to target my take profit at $208.6. and stop limit at $191.0. Below are my order details.
My Plan to Hold ZEC long or Sell
I have no plans on holding onto this ZEC and so I have marked take profit level and stop loss level on the chart above. I will exit the market should in case my take profit level is attained or stop loss level is hit. ZEC is a volatile token and in case there is trading opportunities in the coming days or months, I will scalp again to make profit.
Would I recommend people to Buy ZEC
ZEC token is a volatile token with a lot of trading opportunities, scalpers can make good analysis to spot entry and exit positions to trade with either margin, leverage or spot trade depending on their level of taking risk.
The project that manages the Zcash network, for-profit Electronic Coin Company (ECC) has issued the launch of a great project that will give a lot of value to to ZEC in the coming month, and swing traders can purchase to make profit in the coming months.
I will recommend ZEC to everyone to buy for the coming months as the project has issued the launch of a great feature on the network but on the basis of their own fundamental, technical and sentimental analysis.
Other Information about the Token
Zcash network has several social media platforms where we can find the latest news and updates for the project.
The above screenshot is taken from twitter, from the ZEC project account about the latest update of the token.
For the fourth week of the trading competition, I have selected and traded on ZEC/USDT as my first trade of the week after carefully making my own analysis about the token.