Leading Crypto Currencies By Market Cap
What Happened to ZCash?
Back in April we were bullish ZCash (ZEC), as it had appeared to have put in a major low. I ended up being wrong. The market has now taken it down more than 84% from its all-time high of 955, and the rout isn't likely over.
There was a lot of fanfare for ZEC when it was listed on the Gemini exchange, one of the more reputable that trades only two other cryptos, Bitcoin and Ethereum. However, bearish sentiment began to emerge. An article by Winifred Gerald at the website Financial Mercury offers an explanation:
"ZCash was doing quite well, until it introduced ASIC mining, and investors lost interest in it. They lost interest because ASIC mining has a tendency to move towards centralization. ...The introduction of this mining and the possibility of centralization defeated the whole essence of privacy that ZCash uses as a selling point. That’s because a privacy coin is supposed to be fully decentralized."
The Elliott Wave trend for ZEC also suggests it is likely to stay under pressure. The break of the April low negated the idea the wave ((2)) bear market had ended. What unfolded was a three wave A-B-C rally between April and May. Three wave moves are corrective and are always retraced and exceeded. The larger pattern that appears to be unfolding from the all-time high is a double zigzag, one of the forms a second wave can take. That suggests that the recovery from the recent 148 low should also be a corrective advance, wave B. 295 represents the 61.8% Fibonacci retracement of the preceding wave A decline. Wherever it actually tops out, we'll be looking for a reversal beneath the 148 low to complete the correction. It would require an advance above the 386 high to indicate the correction might have ended.
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