Zcash has seen significant growth in this cycle, surging over 700% in just three months before undergoing a healthy correction. After a strong rally last week, the price is currently experiencing a slight pullback, leading investors to wonder if the bullish momentum is fading or simply consolidating before continuing its upward trajectory.
While the short-term price action remains uncertain, on-chain data and volume trends suggest that buyers are quietly maintaining control. Zcash's next move will depend on whether the current accumulation phase can translate into another rally.
Buyers Remain Active Despite Cooling Trading Volume
Currently, Zcash is trading within a tightening triangle pattern, indicating a tug-of-war between buyers and sellers rather than a clear sign of weakness. Notably, the price remains above the primary uptrend line for this cycle. As long as this structure holds, Zcash's medium-term outlook remains positive.
Analyzing volume behavior provides valuable insights. According to the Wyckoff method, green bars signify buyer-driven activity, while yellow and red bars indicate increased seller control. Although buying volume has somewhat cooled off recently, green bars still dominate. A similar scenario played out after October 17th, when buying pressure temporarily weakened before Zcash continued to climb by over 300%.
- A decrease in buying volume doesn't necessarily signal a trend reversal.
- As long as green bars prevail, bullish momentum remains intact, despite short-term corrections.
Spot Flow Data Reinforces Accumulation Trend
Spot flow data further supports this assessment. Spot flow reflects coins being moved onto or withdrawn from exchanges. Inflows typically signal potential selling pressure, while outflows suggest accumulation.
On December 12th, Zcash recorded approximately $14.26 million in exchange inflows, indicating potential selling pressure. However, just one day later, outflows surged to around $17.34 million, reflecting an accumulation trend as investors moved coins off exchanges.
This shift is significant because removing coins from exchanges reduces immediate selling pressure and often indicates that spot investors are using corrections to buy rather than taking profits during rallies.
Although Zcash has corrected slightly by around 2.5% in the past 24 hours, it is still up nearly 20% for the week and over 700% in the last three months. The uptrend has not been broken; the price is in an accumulation phase.
Key Price Levels Shaping Zcash's Next Trend
To maintain its bullish structure, Zcash needs to break out of its current triangle pattern. A key price level to watch is $511, representing a 24% increase from the current price. A clear daily close above this level would confirm a new upward trend and signal that buyers have regained control.
- Upside Targets: If a breakout is successful, the initial target would be the $549 area, followed by $733, which previously capped gains.
- Higher Resistance Levels: Higher resistance areas lie around $850 and $1,190, but reaching these levels would require strong momentum and favorable market conditions.
Conversely, downside risks are also clearly defined. If Zcash loses the $430 mark, the triangle structure would be weakened. Strong support lies at $391, and if selling pressure intensifies, the price could fall as low as $301.
| Scenario | Key Level | Implication |
|---|---|---|
| Bullish Breakout | $511 | Confirms uptrend, targets $549 and $733 |
| Bearish Breakdown | $430 | Weakens structure, support at $391 & $301 |
FAQs
Is the Zcash price rally over, or is this just a temporary pullback?
The recent price pullback appears to be a consolidation phase rather than a trend reversal. On-chain data suggests buyers are still accumulating Zcash, indicating potential for further upward movement.
What do Zcash exchange outflows of $17 million mean for its price?
The $17 million in Zcash exchange outflows indicates accumulation, as investors are moving coins off exchanges. This reduces immediate selling pressure and suggests investors are buying during corrections, which is a bullish signal.
What are the key Zcash price levels to watch for a continued uptrend?
Zcash needs to break out of its current triangle pattern, with $511 being a key level to watch. A daily close above this level would confirm a new upward trend, with upside targets at $549 and $733.
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