An inverse head and shoulders pattern formed in privacy-focused cryptocurrency Zcash. This is a typical trend reversal pattern but may be breaking down with price action failing to overcome resistance at the 50 EMA. Price action rose above the 50 EMA yesterday but has since retraced below.
Price has dropped around 5% on significant volume, a bearish signal with the rest of the market consolidating on low volume. The inverse head and shoulder pattern which formed is illustrated on the chart below via the arrows pointing to the head and shoulders.
Whether privacy coins are set to outperform when the market returns to upward movements is yet to be seen. Privacy coins have outperformed most altcoins during this year’s decline. While most altcoins have lost over 90% of there value, top-tier privacy coins such as Zcash and Monero have proved to be a better store of value. Monero has lost about 75% of its value since January while Zcash has lost about 85%.
However, Bitcoin has proven to be a better store of value than both. Zcash is currently worth about 1.84 Million Satoshis (0.01840000 Bitcoin). this is down from being worth about 5.6 Million Satoshis during January’s highs.
- Zcash declines about 5% today despite bullish inverse head and shoulders pattern forming.
- Today’s decline has been on significant volume after price action failed to overcome resistance at the 50 EMA.
- Top-tier privacy coins Zcash and Monero have proved to be a better store of value than most altcoins, but Bitcoin remains a superior store of value.