The price of Zcash has skyrocketed in this round, increasing by more than 700% within three months and experiencing a strong consolidation after rising robustly throughout the past week. The price is now adjusting downward, raising questions about whether the buying momentum is starting to weaken or if it is just a new consolidation phase.
Although short-term price movement remains unclear, data on the blockchain and trading volume suggest that buyers may quietly still be in control. Thus, the next direction depends on whether Zcash can transition from the accumulation phase to a continued upward trend.
Buyers still control the structure, even as volume decreases.
The price of Zcash is currently trading within a narrowing triangle, reflecting uncertainty between buyers and sellers in the short term rather than actual weakness. However, the price continues to respect the upward trend line established this time. Therefore, as long as this structure remains, the overall outlook still appears positive.
The behavior of trading volume provides important supplementary information. Using Wyckoff volume color analysis, the blue bars indicate buyer activity, while yellow and red bars reflect that sellers are starting to control the market more.
Even though the buying side volume has slightly slowed down during this period, the blue bars still dominate. Historically, after October 17, a similar slow down in buying pressure occurred before Zcash surged over 300% again.
The decrease in buying volume alone does not halt this trend. Therefore, as long as the blue bars remain dominant, this upward adjustment trend is likely to remain strong, even with some pullback occurring.
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Spot flow data confirms this overall picture, as Spot flow will track whether the coin is being moved onto or off exchanges.
If inflow indicates selling opportunities, while outflow shows accumulation, on December 12, Zcash recorded a Spot inflow of about 14.26 million USD, meaning that coins were moved onto exchanges.
However, by December 13, it had flipped to a net outflow of about 17.34 million USD, indicating that coins were moved off the exchanges instead.
This change is significant because the outflow from exchanges helps reduce selling pressure in the short term and often reflects buyers in the spot market coming in during the correction rather than selling during the price surge.
Despite a slight pullback of about 2.5% in the last 24 hours, Zcash has still increased about 20% over the week and more than 700% over the past three months. Therefore, the trend has not been broken but is in an accumulation phase.
The support and resistance levels for Zcash price determine the next direction.
For the upward structure to continue, the price of Zcash must break out of the triangle, with a key level to watch being 511 USD, which is 24% above the current level. If the price can close clearly above this point on a daily basis, it will confirm an upward recovery and signal that buyers are regaining control of the market.
If a breakout occurs, the first target will be near 549 USD, followed by 733 USD, which had previously been a level that capped earlier runs. There are also higher resistance levels near 850 USD and 1,190 USD, which will require continued momentum along with favorable overall market conditions.
However, the downside risk is still evident. If the price of Zcash drops below 430 USD, the triangle structure will weaken, with strong support near 391 USD. If there is a deeper pullback, it could open the door to 301 USD, especially if risk aversion spreads across the market.
