The ZCash network will undergo a halving in mid-November 2020.
The event is estimated to occur on the 17th of November at block 1,046,400.
Like Bitcoin, block rewards will be reduced from 12.5 ZEC to 6.25 ZEC.
As with all halving events, traders and investors should expect some volatility.
With the Bitcoin halving event almost a month behind us, it is very easy to forget that the ZCash (ZEC) network also has a halving event this year. The block rewards for miners will be reduced from the current 12.5 ZEC to 6.25 ZEC at block 1,046,400. At the time of writing this, this block height is estimated to be reached in 177 days. The event therefore will happen on, or around, November 17th, 2020.
Countdown courtesy of NiceHash.com
Brief Technical Analysis of ZCash (ZEC)
ZEC/USD daily chart courtesy of Tradingview.com
Further checking the 1-Day ZEC/USD chart courtesy of Tradingview.com, we observe the following.
ZEC’s current price at $47.52 is above the 50-day, 100-day and 200-day moving averages thus providing a case for bullish momentum
However, both the MACD and MFI provide a picture of reduced buying demand thus giving the possibility of ZEC/USD perhaps retesting the previous support zone of $37 depending on the price action of Bitcoin.
Other support zones include $45.9, $44, $42.32, $41 and $35.
ZCash also has the following short term resistances to contend with: $48, $49.2, $50.7 and $54.
On a macro level and as we approach the halving in November, ZEC/USD might just have enough momentum to retest its February high of around $75 ahead of the halving in November.
As always, traders and investors are advised to protect their capital using stop losses and carrying out further fundamental analysis. In the case of ZCash (ZEC), it is worth remembering that other crypto projects have mentioned implementing Zk-Snarks for privacy on their blockchains. One such project is Tron and there is speculation that Justin Sun and the team at the Tron Foundation will introduce privacy with the new upgrade dubbed 4.0.