Zcash Buyers Withdraw $17 Million from Exchanges as Price Stabilizes — What Lies Ahead?

In a remarkable surge, the Zcash price has risen over 700% in the last three months, followed by a natural pause. After a substantial rally over the past week, the price is currently retracting, stirring speculation about whether this indicates a loss of momentum or just a brief reset.

Key Takeaways

Zcash's price has experienced a significant surge of over 700% in three months.
The current price behavior is within a tightening triangle pattern, indicating buyer-seller indecision.
Volume analysis shows that buyers still have control despite a recent cooldown.
A critical breakout level to watch is $511, while strong support resides near $391.

Although short-term price trends appear uncertain, on-chain metrics and trading volume suggest that buyers may still hold a significant influence. The next direction for Zcash hinges on whether it can transition from a phase of consolidation to a renewed upward momentum.

Buyer Control Persists Even Amid Decreased Volume

Zcash is presently trading within a narrowing triangle pattern, reflecting a temporary indecision between buyers and sellers rather than a sign of weakness. Importantly, the price is still adhering to the upward trend line that has guided its rise in this cycle. If this structure remains intact, the overall framework looks promising.

Volume behavior adds another layer of understanding. Utilizing Wyckoff-style volume color analysis, blue volume bars represent buyer-led activity, while yellow and red bars indicate increasing control from sellers.

Despite a recent decrease in buyer volume, blue bars continue to dominate the charts. A similar decrease was observed after October 17, when buying pressure eased temporarily before Zcash surged more than 300%. A dip in volume alone did not halt that upward trend. As long as blue bars lead, the rally is expected to remain robust, regardless of any pullbacks.

Zcash Buyers In Control: TradingView

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Recent spot flow data supports this perspective. Spot flows indicate whether coins are entering or leaving exchanges. Inflows suggest potential selling pressure, whereas outflows indicate accumulation. On December 12, Zcash experienced about $14.26 million in spot inflows, suggesting coins went onto exchanges.

However, by December 13, this trend reversed sharply, showing a net outflow of approximately $17.34 million, indicating that coins were being withdrawn from exchanges.

Sudden Surge In Spot Buyers

This shift is significant. When coins flow off exchanges, it diminishes immediate selling pressure and typically reflects buyers stepping in during price pullbacks rather than selling into strength.

Despite a slight dip of around 2.5% in the last 24 hours, Zcash remains up about 20% this week and over 700% in three months. The upward trend remains intact and is merely consolidating.

Key Price Levels for Zcash’s Next Move

To maintain the bullish setup, Zcash’s price must break out of the triangular formation. The critical level to monitor is $511, which is a 24% increase from its current value. A definitive daily close above this threshold could confirm a bullish outcome and indicate renewed buyer dominance.

If this breakout occurs, the initial target for upward movement would be approximately $549, followed eventually by $733, which previously capped rallies in this cycle. There are also higher resistance levels around $850 and $1,190, although reaching these would require sustained momentum alongside favorable broader market conditions.

Zcash Price Analysis

However, there is downside risk to consider. If Zcash’s price falls below $430, the triangle structure may weaken considerably. Strong support is found around $391, and if there is a deeper decline, it could lead to levels as low as $301 if a general risk-off sentiment prevails in the market.