Despite being on an upward slope, the MFI has not reached overbought levels suggesting there is room for more gains.stood among the top market gainers at press time after a 12% gain in 24 hours to trade at $54.40. The altcoin’s market capitalization had also reached $886 million and was fast approaching the crucial $1 billion milestone..
The Money Flow Index with a value of 73 confirms this bullish thesis. It indicates that buying pressure is strong and driving ZEC’s uptrend. Moreover, despite being on an upward slope, the MFI has not reached overbought levels suggesting there is room for more gains. A bullish MFI and a breakout from the ascending parallel channel could see traders hold or add to their positions.More bullish trends can also be seen in the Moving Average Convergence Divergence indicator as the MACD line continues to trend above the signal line. The positive MACD histogram bars further confirm the uptrend.
With these bullish signs aligning, the next target price for Zcash is the 1.618 Fibonacci level . There is also a strong support level at $44, and if ZEC fails to break resistance at the upper boundary of the ascending channel, the price could drop to test this support.Zcash’s recent gains have spurred interest in the token from derivative traders as seen in the rising open interest.
After these short positions were wiped out, the closest liquidation zone has moved to below the current price at $51. If ZEC drops to this zone, it could trigger further dips due to forced selling from long liquidations.However, if more buyers step in before ZEC drops to this level and defend this support zone, it could lead to a sustained uptrend.Mary is a seasoned crypto news writer passionate about blockchain technology, digital assets, and Web3.