Zcash retests $56 as resistance; these Fib levels can serve as support

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Since early April, Zcash has been on a steady downtrend. It formed a peak at $210 in late March, but its higher timeframe market structure has been bearish since mid-April. At that time, the price fell below the $160 area, which had formerly been a support level. The price retested the same region as resistance later in April. It proceeded to set a series of lower highs on the charts, a trend that continued to the time of writing.

Source: ZEC/USDT on TradingView

The downtrend has been interspersed with periods of rapid rallies. One such occurred in mid-May when ZEC bounced from $69.5 to $116.6. In the following weeks, the price slowly bled and slid lower down the charts to trade at $52.7 at the time of writing.

Earlier this month, the area from $53-$57 was tested as a demand zone and saw a bounce to the $70 level. However, bears came out on top once again and forced the price back below the $60 mark.

The Relative Strength Index (RSI) confirmed a downtrend to be in progress in recent weeks. It was unable to cross the neutral 50 line and indicated strong downward momentum on the 12-hour chart.

Source: ZEC/USDT on TradingView

The aforementioned bounce from $69.5 to $116 was used to plot a set of Fibonacci retracement levels. ZEC has broken beneath each one of them, and in the past two weeks, has also retested $70 as resistance. In the past few days of trading, both the $70 and the $62.5 area were shown to be stiff resistance zones.

Furthermore, buyers were unable to drive prices any higher. When Bitcoin [BTC] slipped back below $20k, ZEC also lost a hefty chunk of value and