$ZEC There’s one detail about this selloff that I think is worth discussing 🤔

The 888 area we’d been watching was originally a support zone formed by a previous daily high, but this weekend’s selloff broke straight through it, with the low even touching around 800

But here’s the interesting part:

This morning, ZEC surged quickly from its low, briefly rebounding to around 930 and reclaiming the key zone it had previously lost

Looking at this price action alone, it does have the feel of a false breakdown

The problem, though, is that a series of Lower Highs and Lower Lows had already formed on the 4H chart, and today’s rally has yet to truly break the existing bearish structure

What’s more, after rebounding to around 930, it began to pull back noticeably again

My view is that there is short-term support around 800, but it’s still too early to call this a trend reversal

The key thing to watch next is whether it can reclaim and hold above 888

If it loses that level again, today’s impressive rebound may ultimately turn out to be just a short squeeze