Zcash ($ZEC ) has delivered an astonishing 700% gain in just three months, but after this meteoric rise, the price is taking a breather. Following last weekโs strong rally, the recent pullback has raised a key question for traders: is momentum fading, or is the market simply resetting for the next move?
๐ Buyers Still in Control
Despite short-term indecision, on-chain and volume data suggest buyers remain quietly dominant. Zcash is currently trading inside a tightening triangle pattern, reflecting short-term tug-of-war between buyers and sellers rather than outright weakness.
The price continues to respect the rising trend line that has guided this uptrend, keeping the broader structure constructive.
Volume insights:
Using Wyckoff-style analysis:
Blue bars = buyer-led activity
Yellow/Red bars = increasing seller pressure
Although buyer volume has cooled recently, blue bars remain dominant, similar to the pause after October 17, which preceded a 300% rally.
This shows that cooling volume alone does not signal an end to the rally โ the trend remains intact as long as buyers maintain control.
๐ง Spot Flow Confirms Accumulation
Spot flow data provides another important perspective. It tracks whether coins are moving onto exchanges (selling pressure) or off exchanges (accumulation).
Dec 12: ~$14.26M moved onto exchanges, hinting at potential selling
Dec 13: ~$17.34M moved off exchanges, signaling accumulation
This shift reduces immediate sell pressure and suggests smart buyers are stepping in during pullbacks, rather than distributing their holdings at higher prices.
๐ Price Levels to Watch
Despite a mild 2.5% pullback in the last 24 hours, Zcash remains:
Up ~20% over the past week
Up 700% over the past three months
Key bullish breakout level: $511
A daily close above this level would signal renewed buyer control.
Upside targets:
1. $549 โ immediate resistance
2. $733 โ previous cycle highs
3. $850 and $1,190 โ higher resistance zones requiring sustained momentum
Downside risk:
Losing $430 weakens the triangle pattern
Support at $391
A deeper breakdown could target $301 if broader market risk-off conditions intensify
๐ฅ Takeaway
Zcash is consolidating, not crashing. Buyers remain in control, as evidenced by dominant blue volume bars and $17M in exchange outflows. The next breakout from the triangle could set the stage for the next major continuation rally, potentially offering significant opportunities for early movers.
๐ฌ Question for traders:
Do you position now during consolidation, or wait for confirmation above $511?
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