ETH, ZEC, and ADA Ichimoku Trade Updates (January 14th, 2020)
This article will update and review the current trading behavior of the three cryptocurrencies we look at yesterday: Ethereum (ETH), Zcash (ZEC), and Cardano (ADA).
Ethereum, like most of the cryptocurrency market, is experiencing extremely bullish price action during Tuesday’s trading session (January 14th, 2020). Ethereum is trading higher over +5% for the day and has retested the coveted psychological $150 value area. On the daily Ichimoku chart, there is no resistance present until price reaches the top of the Cloud at Senkou Span B, the $155 value area. Senkou Span B will prove to be a difficult level to trade above for two reasons. First, Senkous Span B is the most difficult Ichimoku level for price to move above or below – it represents the most substantial area of support or resistance. And second, Senkous Span B is flat. Flat areas of the Cloud represent strength and because Ethereum’s Senkou Span B is flat, it exacerbates the intensity of that level. Expect resistance at $155.
Wow. Zcash (ZEC) is rocking today. Nevermind the +10.22% gain it is currently showing, but if we look at the monthly performance so far, it is also a big wow: +50.2%. Zcash is not just the best performing privacy coin so far in 2020 (the whole two weeks we’ve been in 2020), but it is one of the best performing cryptocurrencies in the entire cryptocurrency market. It is also one of the few cryptocurrencies that is trading near three-month highs and is one of the only cryptocurrencies to trade above its November 2019 highs. If Zcash were to push just a little bit higher, it would create new 100-day highs and swallow up all of October, November and December 2019’s price action. One other condition on Zcash’s chart that I like to see is where the current daily candlestick low is it: the Volume Point Of Control (VPOC). The red horizontal line is the VPOC for Zcash and not only did we trade above that level yesterday (January 13th, 2020), but we’ve retested the break of that level and traded higher on the daily chart. We should consider that both price and the Chikou Span trading above the Cloud is an extremely bullish event and one that could indicate a prolonged trend trading higher. Additional resistance here not shown is the 3/8th inner harmonic at 43.14 – roughly where the high of the day is at.
The current daily close of 0.383 is not far from where Cardano (ADA) was trading at when we reviewed it yesterday. However, the daily candlestick is one that should warrant a lot of attention. There was a flash crash on Bittrex with Cardano where Cardano’s price traded, for a few seconds, nearly -13% below the daily candlesticks open. Cardano continues to test the VPOC at 0.3866. It is just a hair above the daily Cloud and it Cardano can close above the daily Cloud, this will be the first time we’ve had a bullish close above the Cloud since March 10th, 2019. The Chikou Span may run into some resistance at 0.0407, but it may not be an issue because if Cardano does break above the Cloud and the VPOC, that should generate enough momentum to see Cardano trade significantly higher. Not shown is where Cardano is trading at to its weekly Ichimoku levels – but Cardano is currently trading slightly above the weekly Tenkan-Sen, something it has not done since June 2019. If the momentum can last, Cardano could see some explosive activity this week.