- Retail traders are sustaining ZEC’s rally as whales take profits.
- Shielded pool growth tightens supply, boosting confidence in privacy tech.
- RSI signals and resistance levels suggest further upside near $284–$314.
Zcash (ZEC) has been one of the top performers among privacy-focused cryptocurrencies, surging nearly 470% over the past three months. After a brief pullback, ZEC is trading near $250, holding most of its gains despite cooling off from its earlier rally. While some may read this pause as fading momentum, the underlying signals suggest the uptrend is far from over.
Whales Step Back, Retail Traders Step In
Large investors appear to be taking profits after ZEC’s dramatic rise. The Chaikin Money Flow (CMF), a measure of big-money inflows, has dropped from 0.45 at the start of October to around 0.04. This indicates whales are easing off. However, retail traders are stepping in, sustaining the rally. Over the past 24 hours, ZEC’s net flow shifted from +$18.14 million to –$4.06 million, signaling more coins leaving exchanges as holders move them into private storage.
Privacy Adoption and Supply Tightening Bolster Confidence
Retail accumulation is complemented by Zcash’s growing shielded pool, which recently surpassed 4.5 million ZEC—nearly 27.5% of the total supply. This indicates more users are storing coins long-term in private wallets rather than trading them, tightening supply and reinforcing faith in Zcash’s privacy technology.
Technical Signals Hint at Continued Upside
ZEC’s technical setup also supports further gains. A bullish divergence in the Relative Strength Index (RSI) suggests the uptrend is likely to continue. Key resistance levels are projected at $284, $314, and $441, with the more ambitious full breakout target reaching 547% based on flag patterns, though that remains longer-term speculation. Short-term risk exists if ZEC falls below $247 or $209, with $187 representing a critical support level to maintain the bullish structure.
Also Read: Aave and Maple Finance Partner to Bridge Institutional Credit with DeFi
While whales have scaled back, retail traders’ confidence and growing privacy adoption provide a strong foundation for Zcash’s rally. With supply tightening and technical indicators pointing to potential upside, ZEC remains a key coin to watch in the privacy token sector.
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. Coin Brief is not responsible for any financial losses.
