Introduction
Hello crypto Lovers!
It is another day in crypto academy. Today is the 3rd day of the week two trading contest in the academy. My name is Kehinde Micheal, and my username is @msquaretwins here on this platform. This week, I have been submitting my assignment for Team Reminane which is led by professors @reminiscence01 and @nane15. Today in this post I will be analysing another wonderful project in the crypto space. The project I will be analysing today is Zcash (ZEC). Therefore I want you to follow me closely. Happy reading!
History of Zcash
Zcash which is normally shorten as ZEC is a cryptocurrency that was developed in 2016. It was the innovative idea of an entrepreneur and computer security professional called Zooko Wilcox O'Hearn. The Zcash cryptocurrency is managed by Electronic Coin Company, a company that was founder by the same founder of Zcash.
Wilcox together with the help of some professors and researchers from John Hopkins University, MIT developed the protocol for zcash cryptocurrency. The Electronic coin company raised about 3 million dollar to fund the development of Zcash protocol.
The zcash was developed using the code of bitcoin cryptocurrency. Theferore, like bitcoin, zcash also uses proof of work SHA-256 has function as it consensus mechanism. Private and public transaction is possible for zcash. The privacy technology that is employed on zcash is called zk-SNARKs and this allows confirmation of transaction without the need to showcase the identity of parties involved. This means that the addresses of both sender and receiver of a transaction are not displayed to the public. Also, the amount of money sent or received is not disclosed.
Like I have rightly said, the trading symbol used for zcash on exchanges is called ZEC. This cryptocurrency is popularly known for its security. In fact, the aim of creating this cryptocurrency is to give and improve security and more privacy through what is called shielded addresses. Unlike bitcoin that uses 10 minutes for a block time, the block time used in zcash is 75 seconds.
The current market capitalization of zcash is $1,635,419,053 as indicated by a red box in the screenshot. The circulating supply is 13,856,893 ZEC. The trading volume is indicated by a black box and it is $220,408,113.
SourceZcash has it All Time High (ATH) recorded on 29th of October 2016. During the time, it reached $5,941.80. The All Time Low (ATL) of zcash is $18.94 and this was made on March 13th, 2020.
SourceExchanges where Zcash can be Traded
Zcash can be traded on many exchanges. Some of the exchanges are lusted below.
- Huobi Global
- FTX.
- OKEx
- Binance
- CoinTiger
- HitBTC
- BKEX
- Gemini
- Binance US
- Kraken
Technical Analysis ZEC/USDT
The picture uploaded below is a picture of ZEC/USDT on a weekly timeframe. As seen in the picture below, this asset has been on a bullish trend on this timeframe. Then at a point, price made a high that was lower than the previous high. Then sellers took control of the market and dragged the price downward. This caused the break of a dynamic support level indicated in the screenshot below. Hence, the break of this dynamic support signal a sell order.
I switched the chart to daily time frame to see what price is doing on a daily timeframe. As seen in the picture below, daily time frame has the same bias as that of the weekly timeframe. We also noticed a supply zone when price of this asset is currently. As indicated in the picture, there is an order block at that level. That is a buy candle before the previous sell move. In market, order block area is a great area of price reversal. So I am very interested in this zone.
The projection of price movement is also indicated in the picture uploaded below.
Then I changed the chart to 4 hour timeframe as seen below. On 4 hour timeframe chart, we can see that the supply zone indicated on a daily time frame is valid because price goes up to clear all the parcel of money indicated on the chart below. It is called liquidity grab. Price went up to take all the liquidity that has been created.
Also when price got to our supply zone, we can see that %k line and %D line of a stochastic indicator crossed each other at the overbought region. This also shows a sell signal and serves as a confluence for our sell order.
Then after the confirmation from the stochastic indicator I placed a sell order with;
- Entry price = $116.9
- Stop loss = $128.7
- Take profit = $107.8
Then I opened my Binance App to take the real order. The real order is taken on binance futures as seen below in a screenshot.
The picture below shows the running order of ZEC/USDT on a Binance future trading.
Your plan to hold it for a long time or when to sell.
As I have said earlier, the asset is very bearish currently. So I don't plan to hold it for too long. My plan is to sell it and get out of market. Basically I plan to get out of market at the last high that was broken on the 4hr timeframe chart as seen below.
Do you recommend everyone to buy this token? Give reasons for your answer.
As we have seen the overview of price on both daily and weekly time frame that market is on a downtrend. Therefore, my recommendation for anyone that is considering ZEC/USDT is to look for an opportunity to join the current trend, bearish trend. Trend is always your friend. There is high probability of winning when you trade in line with the trend. Therefore, I recommend a sell order.
Conclusion
I have discussed extensively about the Zcash cryptocurrency in this post. I gave a background history of the coin and the aim or vision of creating the project. More so, I did a technical analysis of the token starting from the weekly time frame down to daily timeframe and 4 hours time frame. With the help of stochastic indicators and market structure and supply zone, I took a real sell order of ZEC/USDT on a Binance platform.
Special thanks to my team leaders, @reminiscence01 and @nane15; my team members; and the entire members of the steemit cryptoacademy.
Thank you for reading.
Cc: @reminiscence01
@nane15
@steemcurator02
Link to original post: https://steemit.com/hive-108451/@msquaretwins/zec-usdt-sell-crypto-academy-s6t2-team-trading-contest-post-for-reminane