Zcash Whale Activity: Can $31M in Inflows Push ZEC Above $439?

Zcash [ZEC] has been facing challenges in its price structure recently, primarily due to leadership issues. This has resulted in a significant price drop from a recent high of $528 down to $400, indicating strong bearish sentiment in the market. As of now, ZEC is trading at $402, having experienced a slight daily decline of 1.21%. Notably, this downturn has presented an attractive buying opportunity for larger investors, commonly referred to as whales.

Key Takeaways

Zcash has experienced significant price drops amid leadership challenges and market uncertainty.
Recently, a notable whale purchased 76,661 ZEC, totaling approximately $31.65 million.
Despite increased whale activity, ZEC's price has not yet seen a substantial increase.
Current trends suggest potential further declines unless whale accumulation leads to upward momentum.

Zcash: Could $31M in whale buys help ZEC flip $439?

Zcash Whale Makes a Major Purchase

Following a low of $361 a week ago, whale trading volumes saw a decrease as these larger holders began to sell off their holdings. The Whale Hunter Indicator on TradingView indicated a 10.24% downward pressure on ZEC as these whales started repositioning. However, a notable change occurred when large entities re-entered the market, indicating a desire to defend higher price levels. This resurgence was reflected in the whale momentum index, which increased from 416 to 529.

Zcash whale indicator Source: TradingView

During this period, on-chain analysis revealed that a major whale made a significant purchase. According to Onchain Lens, a new wallet withdrew 76,661 ZEC from Binance, valued at $31.65 million. This heavy accumulation indicated that whales were keen to acquire ZEC at a discounted price during a period of market uncertainty.

Additionally, data from CoinGlass indicated a negative Spot Netflow for Zcash, which has persisted for five days, highlighting an increase in dip-buying activity amongst investors.

Zcash spot netflow Source: CoinGlass

At the time of the report, Spot Netflow was recorded at -$4.35 million, indicating that outflows were greater than inflows. Despite the overall bearish trend in the market, investors continued to accumulate ZEC, contributing to a limited recovery from a previous dip at $361. Often, such accumulation can provide the necessary boost to propel upward price momentum.

Can Whale Purchases Revive Struggling ZEC?

In previous instances, ZEC prices have surged significantly whenever whale demand increased, yet they often dropped sharply when whales began selling. However, in this situation, recent whale acquisitions have not significantly impacted ZEC’s pricing. Instead, the altcoin experienced a drop from $411 to a sustained low of $411, underscoring ongoing bearish sentiment in the market.

Zec stoch & EMA Source: TradingView

Currently, the Stochastic RSI for ZEC has shown a bearish crossover, dropping to 41 and entering into the bearish territory. Moreover, ZEC has dipped below its short-term moving averages, including the 20- and 50-day EMAs, confirming continued bearish pressure. These market indicators place Zcash in a precarious position, suggesting further losses could occur unless there is a positive shift in whale accumulation. If this trend continues, ZEC could breach the significant support level of $400, potentially heading toward $392. Conversely, should whale activity drive demand, there is a possibility for ZEC to regain momentum and aim for the EMA50 resistance at $439.

Final Thoughts

The current dynamics in the Zcash market highlight the influence of whale activity on price trends. As larger investors accumulate ZEC amidst ongoing challenges, the market waits to see if this can result in a sustained upward trend. Market participants need to keep a close watch on how whale behavior evolves in the coming days.