- ZEC fell below major short-term EMAs after five straight days of losses.
- Whales continue accumulating, signaling long-term conviction.
- Bearish momentum remains strong, keeping downside risks elevated.
Zcash (ZEC) has come under renewed pressure following the broader crypto market pullback, slipping to price levels not seen since early December. While large holders appear to be quietly accumulating during the dip, technical indicators suggest bearish momentum remains firmly in control—at least for now.
The mixed signals have left traders weighing whether whale demand can eventually stabilize ZEC or if further downside lies ahead.
ZEC Breaks Below Key Averages as Selling Accelerates
After failing to hold above $449 earlier this month, Zcash entered a steady decline that pushed the token down for five consecutive sessions. The sell-off drove ZEC below its 20-, 50-, and 100-day exponential moving averages, confirming a short-term bearish structure.
At the time of writing, ZEC was trading near $347, marking a nearly 6% daily drop and extending a week-long downward trend. The inability to reclaim short-term moving averages has kept sellers firmly in control, even as dip buyers emerge.
Whale Accumulation Signals Long-Term Conviction
Despite the price weakness, on-chain data suggests whales have not abandoned Zcash. While overall whale buy volume has cooled from recent peaks, large holders have remained consistently active, maintaining steady average purchase levels for several days.
Notably, blockchain tracking data revealed a newly created wallet withdrawing more than 8,500 ZEC—worth over $3 million—from Binance. The wallet has since increased its holdings to approximately 12,500 ZEC, signaling strong conviction during the downturn.
Historically, sustained accumulation during declining prices often reflects confidence in longer-term recovery rather than short-term speculation.
$414 Million Flows Out of Exchanges—but Is It Enough?
Exchange data supports the accumulation narrative. Zcash spot netflows have remained negative for eight consecutive days, with investors moving roughly $414 million worth of ZEC off exchanges. Reduced exchange supply typically eases selling pressure and can help form a price base.
However, momentum indicators paint a more cautious picture. ZEC’s Stochastic RSI remains deep in oversold territory, reflecting dominant bearish control and limited immediate upside follow-through.
Unless broader demand strengthens, ZEC could still test lower support near $301. A meaningful recovery would likely require renewed buying pressure to reclaim resistance around $390.
Also Read: SEC Drops Zcash Probe—Here’s Why ZEC Jumped 12% Overnight
Zcash is at a critical crossroads. Whale accumulation and sustained exchange outflows suggest long-term confidence, but technical momentum continues to favor sellers. Until demand meaningfully outweighs broader market pressure, ZEC’s recovery attempts may remain fragile.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
