Is the ZEC fluctuation confusing? A concise analysis with 6 points to help you understand the topping evidence!
1. Topping conclusion: ZEC is indeed topping, and the lack of a decline is due to the upward inertia on the monthly and weekly charts, while the daily chart is consolidating and waiting for direction.
Market reversal requires the 'daily chart to lead the weekly chart'; although the process is slow, the trend is hard to change.
2. Logic of the traders: After rising dozens of times from the bottom, the traders have made substantial profits but hold too many chips, and the buying volume at high positions is scarce, which can only lead to slow selling.
On 11.17, a small amount of chips was sold, causing a drop of 12.66%. The supply obviously exceeds demand, and increased selling in the future will definitely lead to a drop.
3. False breakout trap: On 11.15, there was a deliberate high false breakout, using the 'breakout chasing high' psychology to deceive investors into thinking it would surge to $1000, while in reality, it trapped the buyers.
4. Topping signals: Yesterday, it rose 7.9% but with reduced volume, showing no following buyers; today's volume may still be sluggish, purely the traders having fun.
Additionally, MACD shows a top divergence; once buying volume is exhausted, a large bearish candle is inevitable.
5. Operational suggestions: If the daily chart does not exceed 699.15 tomorrow, consider shorting at high points in the 4-hour chart; if target 1 breaks, look for target 2; if 2 holds, there might be a high 3.
For those trapped in short positions, the liquidation price is 1000+, which is basically safe; when shorting, control leverage to prevent spikes.
6. Past performance: In August, I already warned about the 120,000 major top and accurately analyzed the highs and lows.
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