Inverse Head & Shoulders Pattern In Play for Privacy Coins Monero [XMR] & Zcash [ZEC] $ZEC

Leading privacy coins Monero and Zcash are both displaying similar price patterns on their charts. An inverse head and shoulders pattern can be seen on each. The inverse head and shoulders patterns are considered trend reversal patterns, used to identify potential reversals in downtrends.

Privacy has always been a key issue in the cryptocurrency world. It has proved to be a difficult technological problem to tackle. Monero and Zcash are two of the leading privacy cryptocurrencies with Monero ranked in the top ten by market cap and Zcash ranked in the top twenty.

The inverse head and shoulders pattern is a strong trend reversal indicator and Zcash and Monero could be setting up to lead the next bull market once the current consolidation we are seeing in the market comes to an end.

Monero has held its value better than most in the bear market we have seen for 2018. Price is currently trading around $106, down around 75% from prices in January. Most altcoins have declined over 90% during this bear market but many consider Monero the strongest privacy-based cryptocurrency helping it hold its value.

Price seems to be experiencing some resistance for Monero at the 50 SMA but if the inverse head and shoulders play out and there are bullish movements across the market, the 50 SMA is unlikely to hold as resistance.

Monero / Dollar Daily Chart
Monero Inverse Head & Shoulders. Monero Daily Chart – Source:

Zcash is also showing the same pattern with the 50 SMA. As with Monero, if the inverse head and shoulders follow through or there are bullish movements across the market, the 50 SMA is likely to be overcome. Zcash has not held its value as well as Monero during this years bear market, depreciating around 84% from January highs. This still is a better performance than the majority of altcoins.

The key case to the inverse head and shoulders playing out as a trend reversal for Monero and Zcash would be a bullish breakout in Bitcoin. With Bitcoin representing over 53% of the market cap, bullish movements in the market leader will have significant impacts on other  altcoins. However, even if this occurred, Monero and Zcash given there holding of value and recent price action are likely to outperform when the next bull market begins.

Zcash / Dollar Daily Chart
Zcash Inverse Head & Shoulders. Zcash Daily Chart – Source:

Key Takeaways:

  • Inverse Head and Shoulders, a key trend reversal pattern forming in both Zcash and Monero.
  • Zcash and Monero are two of the leading privacy-focused cryptocurrencies, both ranked in the top twenty.
  • Both have held their value better than the majority of other altcoins during the 2018 bear market.
  • Both are experiencing some resistance at the 50 EMA, but this is unlikely to hold if bullish movements occur across the market.
  • Even if the inverse head and shoulders does not indicate the start of an uptrend for Zcash and Monero, both coins are setting up to outperform in the next bull market.
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