Key Insights
- Zcash price has gone parabolic this month, moving from below $40 to $400.
- The surge is part of the markup phase of the Wyckoff Theory.
- Some of the best crypto to buy are Algorand, Avalanche, and Polkadot.
Zcash price has gone parabolic in the past few weeks as it defied the ongoing crash in the crypto market. It jumped from a low of $38 in September to nearly $400 today. This article examines how the Wyckoff Theory explains the surge and identifies the best cryptocurrency to buy that may replicate these gains.
Wyckoff Theory Explains the Zcash Price Surge
The primary reason for the surge in Zcash’s price is the announcement by Grayscale of a ZEC trust that tracks the token. Data on its website shows that the fund has accumulated over $120 million in assets.
The jump then accelerated after Arthur Hayes made a bullish ZEC price forecast, arguing that it may jump to $1,000. Such a move would see it flip Monero and become the biggest privacy token in the crypto market.
Most notably, the Wyckoff Theory likely played a part in its surge. This theory posits that assets undergo four stages: accumulation, markup, distribution, and markdown.
The chart below shows that it remained in the accumulation phase between January and September. Sideways movements and low volume characterize this phase.
Zcash price has now moved to the markup phase, which is characterized by parabolic moves. It is now expected to move into the distribution and then the markdown phase, where pullbacks happen.
Best Crypto to Buy Today in their Accumulation Phase
Fortunately, there are many cryptocurrencies currently in their accumulation phase that may go parabolic. Some of these are Polkadot (DOT), Algorand (ALGO), and Avalanche (AVAX).
Polkadot (DOT)
Polkadot, one of the top players in the layer-1 industry, is a key crypto to buy during its accumulation phase. The three-day chart shows that the token has remained inside the support and resistance levels at $3 and $11, respectively, since 2022.
This chart shows that it has resisted moving below this support level for months, a sign that bears are afraid of shorting it. Its volume has also remained substantially low in this period, a clear sign of accumulation.
Therefore, the token will likely bounce back in the coming months. Such a move may see it rebound initially to the upper side of the range at $11.63. This target is about 300% above the current level.
The potential catalysts for the Polkadot price surge are its ecosystem growth and the upcoming JAM upgrade.
Algorand (ALGO)
Algorand is another leading crypto to buy during its accumulation phase. The three-day chart shows that the token has remained inside the support and resistance at $0.092 and $0.4500 since 2022.
The continued consolidation happened as Algorand lost its market share in the decentralized finance (DeFi) and non-fungible token industries. It has also had no important catalyst in this period.
The three-day chart shows that it has resisted moving below $0.092 and is slowly forming a falling wedge pattern that is shown in red. These patterns point to an eventual comeback in the near term.
Avalanche (AVAX)
Avalanche is also another top crypto to buy today. It has strong fundamentals, including its rising burn rate, growth in the real-world asset (RWA) tokenization industry, and its upcoming Granite upgrade.
Avalanche price is now in its accumulation phase of the Wyckoff Theory. It has held steady inside the channel whose support and resistance levels are at $13.6 and $55 in the past three years. It has now moved to the lower side and may be on the cusp of a bullish breakout.
Summary
The Wyckoff Theory is one of the best approaches in technical analysis. It has helped explain price action multiple times in the past, including the Zcash price action. It also helped explain the XRP price jump in November last year.
The challenge, however, is that the process may take months or even years to conclude. This calls for a lot of patience among investors.
The post Top 3 Best Crypto to Buy Today That May Replicate the Zcash Price Surge appeared first on The Market Periodical.
