Checking out the technical of ZEC coin and starting from the Daily Time Frame. Observing the zones or levels first, if there is any, a pullback or reversal can be expected while if it has broken any, continuations can be taken. Now in the ZEC case, the price on Daily Time Frame has tapped in the Imbalance Zone and is getting rejected from that zone which shows that sellers are interested in that zone. These imbalance zones are strong as they act as magnets by attracting price toward themselves when it’s left unmitigated and when the price comes to mitigate them, they serve to repel the price. The price has exactly tapped the equilibrium of that zone and the seller’s momentum is seen, which possibly shows a short-term sell or long-term if the reversal is strong.
Nothing more on the Daily Time frame, so moving down to the 4 Hour Time Frame. On a 4 Hour Time Frame, the price was pushing up doing an impulsive move, but in between consolidated. That consolidation was to trap early sellers in the market as traders see these as a reversal area. Now according to the Smart Money perspective, a fake move is usually done to take those, and afterward, they continue in their original direction which seems to be happening in here. The price after consolidation pushed up taking out liquidity and after it grabbed that, it started to lose momentum and now is pushing down.
Moving down to the 1-hour time frame to get a better view and direction. In 1 hour, it can be seen that the price is correctively pushing down to the last demand zone in control. Now there are two scenarios that can play out. First, one is the price taps in the demand zone and shows structural shifts on Lower Time Frame. If this unfolds, possibly short-term Long positions can be taken, targeting the high. The second scenario is if price breaks this demand zone and breaks the last Higher Low, shorts can be taken from the last supply zone in control. Talking about the invalidation and target points. If the price violates the high then this scenario will fail, while for the targets, the level of $126 seems good as the first target, while for the final target $113 is a good one because there is a demand zone there which has the potential to push the price up again.
