Zcash (ZEC) price has surged over 700% in this cycle over the past three months and has entered a healthy correction. Following a strong rise last week, questions arise as to whether the current price is entering a slight downtrend, or if it is simply a phase of re-adjustment.

Short-term price movements are still unclear in direction. However, on-chain and trading volume data indicate that buyers are quietly leading the market. The next trend depends on whether Zcash can transition the correction phase into an uptrend.

Decrease in trading volume... Buying structure maintained

The current price of Gcash is trading within a triangle convergence pattern. This reflects mixed directional sentiment from short-term buyers and sellers, and is not a bearish signal. The important point is that the price still maintains the trend line that led the upward momentum in this cycle. As long as this structure is preserved, the overall market environment is judged positively.

Changes in trading volume add important context. According to Wyckoff-style volume color analysis, blue bars indicate buying dominance, while yellow and red bars show an increase in selling pressure.

Recent buying volume has somewhat slowed, but the blue bars still dominate. Since October 17, buying pressure has similarly weakened for a short time, but thereafter, Gcash saw an additional surge of over 300%.

A slowdown in trading volume alone does not indicate the end of a trend. If the blue bars continue to dominate, there is a high likelihood that the upward trend will persist despite the correction phase.

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Spot flow data also reinforces this trend. Spot flow tracks whether coins are moving to exchanges or coming out of them.

Inflows (deposits) suggest potential selling, while outflows (withdrawals) indicate accumulated buying. On December 12, Gcash recorded approximately $14.26 million in spot inflows as coins moved to exchanges.

On December 13, this trend reversed with a net outflow of approximately $17.34 million, resulting in coins being withdrawn from exchanges.

This change has significant implications. Outflows from exchanges reduce immediate selling pressure and generally reflect the entry of spot buyers during correction phases.

Despite a decline of about 2.5% in the past 24 hours, Gcash has risen approximately 20% over the past week and over 700% in the last three months. The trend has not yet reversed, and it is currently in a correction phase.

Price level for determining the next flow of Gcash

For the bullish structure to be maintained, the price of Gcash needs to break upward out of the triangle convergence range. The key price level to watch is $511, which needs to increase by more than 24% from the current point. If a daily close is formed above this price, a bullish reversal will be confirmed, and the buying momentum will also strengthen.

If a breakout occurs, the first target price is around $549, followed by $733, which limited the previous cycle's rise. The upper resistance zones are located near $850 and $1,190, but to reach these levels, sustained momentum and overall market support are needed.

Downside risks are clearly defined. If the price of Gcash falls below $430, the triangle convergence structure will weaken. A strong support line is formed around $391, and further declines could open up to $301. This may occur if risk-averse sentiment spreads throughout the market.