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I just do not have a scenario in which I am willing to risk money in crypto right now, let alone some of the less common ones like ZCash.
ZCash has initially fallen during the trading session on Thursday but turned around just below the $100 level to show signs of life. That being said, a lot of this was probably a “knock-on effect” from Bitcoin and perhaps, more importantly, the US dollar. The US dollar had a rough session to say the least, as a bit of profit-taking seems to be in order. With this being the case, a lot of risk assets gained, and as Bitcoin and Ethereum took off, ZCash and others got a bit of a boost.
Keep in mind that ZCash is pretty far out there on the risk spectrum, so you need to keep an eye on how everything else is performing. While other coins such as Bitcoin and Ethereum do have a major influence on this market, the US dollar also has a major influence on it as well, as we have seen multiple times. It is also worth noting that the entire crypto market is essentially a basket case right now, and you would need to see the “big boys” recover quite a bit in order to take any rally at this point seriously. If we do get a significant move, then it is possible that ZCash could go as high as $120, but you would need to see Bitcoin rally or the US dollar falter. Even then, I would be a bit suspicious of any rallies as crypto has proven itself to be wanting yet again, and it is very possible we may be heading into the so-called “crypto winter.”
Crypto has a major fraud problem and a huge lack of utility problem. In a situation where some of the more traditional markets are getting hammered due to the economy, it is difficult to imagine how nothing like ZCash is suddenly going to be desired. I prefer to take on levered shorts on rallies that show signs of exhaustion. Quite frankly, that is going to be the case with almost anything that is not called Bitcoin or Ethereum. If we break down below the $85 level, we will certainly test the lows, and breaking down below there opens up a move down to the $50 level. I just do not have a scenario in which I am willing to risk money in crypto right now, let alone some of the less common ones like ZCash.
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