Horizen Takes a Plunge But Strong Support is in Sight!

ZenCash, now called Horizen, has suffered a small 3.07% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at $18.17 after suffering a further 8.84% price decline over the past 7 trading days.

Horizen aims to be a privacy focused communications and economic activity network. It incorporates a payments system, a decentralised autonomous organisation network (DAO), a media content distribution platform and a private messaging system.

Launched on May 23rd 2017 as a fork of ZClassic, Horizen provides a range of privacy levels throughout its network allowing users to select how private they need their transactions to be through a process known as shielded transactions. They use a technology known as ZKSnarks (Zero Knowledge Sufficient Non-interactive Arguments Of Knowledge) to achieve the level of privacy required.

Created by Ron Vigiliane and William Wolf Horizen has the largest cryptocurrency node network consisting of over 17,000 nodes. This makes the cryptocurrency much more resistant to hacks and power failures.

The project has a number of different sectors such as:

ZenChat – Encrypted Text-Based Messaging through blockchain

ZenPub – Allows users to publish documents anonymously through the IPFS content distribution network

ZenHide – A service that allows domain fronting

The recent rebrand was implemented to allow the cryptocurrency to reach a wider audience with more of a mainstream feel.

Horizen is currently ranked at 78th position in terms of overall market cap across the entire industry. The 15 month old coin currently has a total market cap value of $83 million after suffering a 40% price decrease over the past 90 trading days.

Let us continue to analyse price action for Horizen over the long term.

Price Analysis

ZEN/USD – LONG TERM – DAILY CHART

Analysing price action from the long term perspective above we can see that the market had experienced an incredible bullish run when price action started from a low of $4.77 on the 9th of October 2017 and extended to an all time high of $72.31 on the 30th of December 2017. This was a total price increase of 1325% from low to high.

We can see that price action started to rapidly decrease after placing this all time high. It had initially found support at the .618 Fibonacci Retracement level priced at $30.68 during January 2018. This Fibonacci Retracement is measured from the entire bullish run outlined above.

We can see that this support at the Fibonacci Retracement level held through January and February 2018 until price action broke below in March where it dipped to find support around the $16 handle.

The market has recently returned to trade just below the long term .786 Fibonacci Retracement level priced at $19.38.

Let us continue to analyse price action a little closer and highlight any potential support and resistance zone.

ZEN/USD – SHORT TERM – DAILY CHART

Analysing the market from the short term perspective above, we can see that price action had experienced another smaller bullish run throughout April 2018 as price action started from a low of $13.88 on the 27th of March 2018 and extended to an intermediary high of $44.55 on the 28th of April 2018. This was a price increase totalling 232% from low to high.

We can see that the market rolled over after placing the high at $44.55 and continued to decline until support was found at the short term .618 Fibonacci Retracement level (drawn in red) priced at $25.59. This Fibonacci Retracement level is measured from the bullish run seen throughout April 2018.

Price action continued to decline even further in June as the market dropped to find support just below the short term .886 Fibonacci Retracement level priced at $17.40. The market had found support around the $16 handle before rebounding aggressively during July 2018. It had found resistance toward the end of July at the .382 Fibonacci Retracement level priced at $32.80 before rolling over once again.

Price action has since declined further and is now once again re-approaching the short term .886 Fibonacci Retracement level (drawn in red) priced at $17.40. This support is bolstered by a downside 1.414 Fibonacci Extension level priced in the same area.

If the market can continue further below the $17.40 handle we expect immediate support to be located at $16 followed by support at the downside 1.618 Fibonacci Extension level priced at $13.49.

Alternatively, if the bulls can reassemble and push the market back above the $20 handle then we expect immediate resistance to be located at the 100 day moving average which is currently hovering around the $23.40 handle. Further resistance above this level is then expected at the previous short term .618 Fibonacci Retracement level priced at $25.59 followed by the .5 Fibonacci Retracement priced $29.19. The final area of significant resistance we would like to highlight comes in at the .382 Fibonacci Retracement level priced at $32.80.

The technical indicators within the market are currently heavily favouring the bears. The RSI is trading well below the 50 handle indicating that the bearish momentum still has a strong presence within the market. We can see that the RSI battled to break above the 50 handle throughout August but failed to do so. If the RSI can turn around and break above the 50 handle then we can expect gains to start being made, once again, within the market.

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