A cryptocurrency analyst has pointed out how Zcash (ZEC) has broken above the resistance level of a Descending Triangle with its latest surge.
Zcash Is Breaking Out Of A Descending Triangle
In a new post on X, analyst Ali Martinez has talked about a technical analysis (TA) pattern that Zcash could be breaking out of right now. The pattern in question is a Descending Triangle, which is a type of Triangle.
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.
In the case of a Descending Triangle, the lower trendline is parallel to the time-axis. Thus, as the asset travels through this channel, its range shrinks with time to a net downside. Similar to the Descending Triangle, there is also the Ascending Triangle in TA, involving the opposite setup. In this pattern, the range goes up instead.
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.
ZEC isn’t the only altcoin that has seen the formation of a Descending Triangle. As the analyst has highlighted in another X post, DOGE has been stuck inside such a pattern on the 4-hour timeframe.
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.
ZEC Price
Zcash has surged to the $316 mark following its sharp rally over the last few days.
