Understanding Zcash’s Price Movement
The cryptocurrency market has faced significant challenges, and Zcash (ZEC) is no exception. Recently, Zcash’s price dropped to $335, levels last seen in early December, marking a strong bearish trend. Over the past week, ZEC has continually posted lower lows, raising alarms among investors and traders alike.
At press time, ZEC is trading at $347, representing a 5.98% decline. The altcoin has fallen below its 20, 50, and 100 short-term Exponential Moving Averages (EMAs), signaling prolonged bearish momentum.
Whale Activity Amid Market Dip
Interestingly, even amidst the downturn, large-scale investors, often referred to as whales, are buying the dip. A notable instance involves a whale acquiring 8,551 ZEC, worth $3.12 million, as reported by Onchain Lens. This whale now holds a substantial 12.5k ZEC, amounting to $4.54 million. Such purchases typically signal a strong belief in the asset’s potential recovery.
However, while some whales have remained consistent in their activity, data from TradingView indicates a decline in whale buy activity since Zcash was rejected at $449. This reduced risk appetite could reflect concerns about the broader crypto market conditions.
On-Chain Signals Highlight Accumulation Phase
Looking deeper into the data, Zcash Spot Netflow from CoinGlass has been in the negative zone for eight consecutive days. Such sustained outflows, totaling $5.87 million, indicate increasing accumulation, as more assets are moved off exchanges and held in private wallets. Over this period, ZEC saw approximately $414 million in capital inflows, amplifying supply scarcity and potentially mitigating selling pressure in the near term.
Bearish Momentum Persists
Despite the demand from whales, Zcash’s momentum indicators reflect heightened bearish activity. The Stochastic RSI has fallen to 11.96, placing it deep within the oversold zone. When a momentum indicator like this reaches such levels, it often indicates that bears have gained control, and bulls may struggle to reverse the trend quickly.
If the downward pressure prevails, Zcash could see its price decline to $301. However, a strengthened whale demand could spark a short-term rally, targeting resistance at $390.
Navigating ZEC’s Market Trend
Investors should proceed with caution, as cryptocurrency remains a volatile market. For those considering long-term positions, monitoring whale activity alongside technical indicators such as EMAs and RSI is essential. Diversifying investments, exploring other options like staking ZEC, or even pairing your trades with a reliable cryptocurrency wallet is advisable.
Enhance Your Trading With Tools
For Zcash traders looking to optimize their strategies, consider using reliable analytics platforms or engaging with premium charting tools to stay ahead of market trends. If you’re in need of a secure wallet, the Trezor Model T hardware wallet offers unparalleled security for storing ZEC and other cryptocurrencies. Check it out here.
