Zcash Drops 9% to $284, Key $300 Breakout in Focus

• The Bollinger Bands started to contract after witnessing a prolonged period of expansion, and volatility is cooling. 
• At the time of writing, the relative strength index sits at 47, which, before this, was in oversold territory below 30. 

Currently, Zcash is exchanging hands at $284.03, down 8.94% in the past 24 hours. This short-term drop came after a strong performance, wherein in the past seven days, the price is up 19.94%. 

On the other hand, in the past month the drop sits at around 29%. Meanwhile, the one-year gain stands at about 784%, which surely makes it a strong performer of this cycle. In the past seven days, extreme volatility has been witnessed, with levels fluctuating between $223 and $327, and the price remains below the $300 level. 

As per the data from CoinGlass, the trading volume slipped 27% to $1.57 billion, and open interest slipped 13% to $406 million, an indicator that some leveraged positions have been forced at the time of pullback. 

What Do The Bollinger Bands Suggest? 

The price is revolving around $283 and testing resistance at $300. This is a round number and is very close to the latest swing high in the recent recovery leg, and this zone is also where prior price rejections collect. 

The other support stands at $277, which acts as a dynamic support level, and it aligns with the middle Bollinger Band. Surpassing this level means the price is hitting an upward momentum. Going below, the latest swing low and lower Bollinger Band, which sits around $188, offer the upcoming major support. That level indicated the base of the last oversold bounce. 

The Bollinger Bands started to contract after witnessing a prolonged period of expansion, and volatility is cooling. Mostly, this type of compression introduces a stronger directional shift. 

At the time of writing, the relative strength index sits at 47, which, before this, was in oversold territory below 30, showing that selling pressure has reduced. Any trial for a breakout will get confidence if it were to sustain a move over 50. 

The technicals target a price range of $366 if $300 is broken. However, a slump toward $277 would be witnessed if the price fails to touch $300. 

Highlighted Crypto News Today: 

Armstrong Says Coinbase Retail Keeps Buying the Dip Despite Crypto Losses