Zcash has witnessed a significant withdrawal of approximately $17 million from exchanges, signaling a robust accumulation phase during its recent pullback. This comes in the wake of a remarkable surge of over 700 percent in the cryptocurrency”s price over the past three months. With the market now experiencing a period of consolidation, traders are left to ponder whether this pause marks the end of the bullish trend or simply a temporary breather.
Current trading data indicates that despite a slowdown in upward momentum, buyers remain active in the market. The ongoing exchange outflows coupled with price patterns suggest that the bullish trend may still be intact. On December 12, around $14.26 million in Zcash (ZEC) was observed moving onto exchanges, indicating a brief influx. However, by the next day, buyers had shifted the dynamics, withdrawing $17.34 million worth of ZEC into private wallets. This accumulation activity reduces the immediate selling pressure on the asset.
Zcash is presently trading within a tightening triangle pattern, which reflects a state of indecision among market participants. Nevertheless, the price continues to respect an ascending trend line that has been crucial in supporting the uptrend. Volume analysis reveals that buyer-led activity remains predominant, indicated by the continued presence of blue volume bars, a signal reminiscent of previous patterns seen in October when Zcash experienced a rally exceeding 300 percent.
For bullish momentum to accelerate, Zcash must break out above the triangle pattern, with a critical resistance level at $511. A decisive daily close above this threshold could pave the way for further price appreciation, targeting the first resistance level at around $549, followed by additional levels at $733, $850, and the notable $1,190 mark. On the support side, levels are clearly defined, with a breach of $430 potentially weakening the triangle structure. Further declines could expose traders to levels near $391 and $301.
Recent performance data indicates that Zcash has outshined many other cryptocurrencies within the top 100, achieving nearly 28 percent growth over a week, while competitors like Dash, Decred, and Verge have struggled. Institutional interest has also played a pivotal role in this uptrend, with notable entities like Cypherpunk Technologies and Grayscale actively contributing to the accumulation.
Overall, the recent pullback does not signify a reversal in Zcash”s trend. Instead, it appears to be a consolidation phase where buyers are actively accumulating. Monitoring key breakout levels and exchange flow data will be crucial for understanding the next movements in this market. With strong fundamentals and institutional backing, Zcash remains poised for potential upside in the upcoming weeks.
