Zcash Breaks Out With 34% Surge—Is $440 The Next Target?

A cryptocurrency analyst has pointed out how Zcash (ZEC) has broken above the resistance level of a Descending Triangle with its latest surge.

Triangles form whenever an asset observes consolidation between two converging trendlines. Like with other consolidation patterns in TA, the upper line of the channel is likely to be a source of resistance, while the lower one that of support.

Now, here is the chart shared by Martinez that shows the Descending Triangle pattern potentially forming in the 1-day ZEC price:

As displayed in the above graph, Zcash was moving inside this channel earlier, but the sharp price surge over the past week has meant that it has escaped above the upper level. Currently, it’s still uncertain whether the breakout will sustain, but in case it does, it could prove to be a bullish signal.

This is due to the reason that consolidation channel breakouts are generally treated as continuation signals. Thus, if the asset breaks resistance, it’s considered to be headed in the bullish direction, while it falling below support can foreshadow further bearish action.

Based on the latest ZEC breakout, Martinez has put the $440 target. It now remains to be seen whether the breakout will hold and if Zcash will see a rally to this level.

From the chart, it’s apparent that the 4-hour Dogecoin price has been fast approaching the apex of the triangle, suggesting a breakout could occur soon. Based on the height of the channel, Martinez has noted that a 29% move could follow an escape from the pattern.

Zcash has surged to the $316 mark following its sharp rally over the last few days.