ZCash (ZEVUSD) moves sideways in a complex corrective structure as a double three pattern, which suggests a potential decline in the short-term.
The short-term picture of the cryptocurrency pair ZCash against the U.S. Dollar under the Elliott wave perspective shows the slightly upward corrective sequence corresponding to a double three corrective pattern.
According to the wave theory, a double three is a combination of two corrective patterns. This complex Elliott wave structure follows a subdivision as 3-3-3, which should not be confused with an A-B-C structure. An A-B-C structure is part of a standard correction as a zigzag (5-3-5) or a flat (3-3-5). The double three is a combination of two basic Elliott wave patterns connected by another type of corrective structure.
ZCash, in its 4-hour chart, exposes the corrective upward sequence that began on March 16th when the price found fresh buyers at $21.42. In the previous figure, we observe the price development advancing in the first three-wave sequence, which could correspond to a zigzag pattern.
In the first corrective formation, we distinguish that wave (c) of Munuette degree labeled in blue, developed an expanding diagonal, which after the thrust of the upper guideline, completed its wave (c) and ((w)) of Minute degree labeled in black. The bearish reaction gave the pass to wave ((x)) formation.
Once the wave (x) was completed, ZECUSD started to advance sideways in a new corrective structure that looks like an expanding triangle. The current situation of ZCash suggests a limited decline before plummeting toward the lower guideline that connects the end of waves (b) and (d).
According to the Elliott wave theory, the thrust of an expanding triangle tends to extend less than the thrust of a contracting triangle, which can extend beyond the 261.8% Fibonacci level of the largest segment of the contracting triangle. In this sense, the next bearish movement should not extend beyond the March 16th low at 21.42.
In conclusion, our preferred positioning keeps neutral with bearish indication until the next downward move completion.