The price of Zcash has practically soared in this cycle: It rose over 700% in three months, then took a healthy pause. After a strong rally last week, the price is now pulling back. So, does this indicate that the momentum has faded or is it simply a brief breather?
While uncertainty is observed in short-term price movements, on-chain and volume data indicate that buyers still hold control behind the scenes. From here on, it will depend on whether Zcash can turn its price stagnation into an ongoing rise.
Buyers are still controlling the structure despite declining volume.
Zcash is currently trading within a contracting triangle formation. This indicates short-term buyer and seller indecision rather than weakness. Most importantly: The price is still adhering to the trend line that has brought the rise in this cycle. As long as that structure is maintained, the overall picture remains positive.
Volume behaviors also add significant depth to the picture. In the assessment made with Wyckoff-style color analysis; blue bars indicate buyer-dominated transactions, while yellow and red bars show increasing selling pressure.
Although buyer volume has eased recently, blue bars are still dominant. A similar slowdown was experienced after October 17, during which buyer pressure weakened temporarily, and Zcash rallied over 300%.
The cooling in volume alone did not bring an end to the trend. As long as blue bars are dominant, the rise can continue despite possible pullbacks.
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Spot flow data also supports the picture. Spot flows track the movement of coins entering and exiting the cryptocurrency exchange.
Entries to the exchange indicate potential sales, while exits indicate accumulation. On December 12, Zcash recorded approximately $14.26 million in spot inflows, meaning coins were moved to the cryptocurrency exchange.
On December 13, this flow quickly reversed, resulting in a net outflow of approximately $17.34 million from the cryptocurrency exchange; coins were withdrawn from exchanges.
This change is significant. Exits from the cryptocurrency exchange reduce instant selling pressure and often indicate that spot buyers are stepping in during pullbacks, showing that they are not going for a strong sell.
Despite a slight pullback of about 2.5% in the last 24 hours, Zcash continues to remain up approximately 20% over the past week and over 700% in the last three months. The trend is not over. Currently, only price stagnation is being experienced.
Zcash price levels: Points determining the next move
For the upward movement to continue, Zcash's price needs to break upwards out of the triangle. The key level to watch is $511; this means a move of 24% from the current price. A daily candle close above this level indicates that the rise is confirmed and that buyers are regaining strength.
If this breakout occurs, the first target is $549, followed by the $733 level that capped the rise at the beginning of the cycle. Although there are resistance areas such as $850 and $1,190 above, momentum and market support are needed to reach those areas.
Downside risk is also clearly evident. If Zcash's price drops below the $430 level, the triangle structure weakens. $391 is being monitored as strong support, and if risk aversion accelerates across the market, a space could open up to $301.
