The ZCash (ZEC/USD) price shows an upward sequence, which suggests a new rally in the coming trading sessions.
ZCash, in its 4-hour chart, shows a complete the bearish corrective sequence that began on February 13th, when the cryptocurrency found sellers at level 76.00.
On the chart, we see that during the bearish sequence corresponding to wave ((c)) of Minute degree labeled in black, the third wave exposes what corresponds to an extended wave. This internal segment found support at 18.15, where the price bounced and developed a lower high, which looks like a failure pattern in the fifth wave.
Once ZCash found fresh buyers at 21.42, the price action developed an upward five-wave sequence that we recognize as a leading diagonal. In this context, we validate the origin of a new upward movement after the breakout above the descending trendline that links the downward trendline that connects the end of waves (ii) and (iv) in blue that belongs to wave ((c)) in black.
According to the Elliott wave theory, a leading diagonal is an impulsive formation formed by five overlapped segments, which tends to appear in a first wave.
The above-shown chart reveals that ZECUSD completed its fifth wave of Minuette degree (labeled in blue) at $48.98 on April 20th after an upward breakout of the upper guideline that connects the waves (i) and (iii).
After the completion of the first wave of Minute degree, the cryptocurrency experienced a retrace that drove it to 38.2% of Fibonacci, where the price reacted to the upside.
Considering the breach of the last descending trendline that belongs to wave (c) in blue, the current rise observed in ZECUSD encourages us to anticipate a new rally for the following trading sessions. This new upward structure would correspond to the third wave of Minute degree identified in black.
In conclusion, in the short-term, our preferred positioning remains on the long side while the price action continues moving above the level 38.