The price of Zcash has sharply risen during this period, over 700% in three months, followed by a healthy pause. After a strong price rally last week, the price is now retracting, raising questions about whether the sentiment is fading or if the situation is developing anew.
Short-term price movements seem uncertain, but blockchain and volume data suggest that buyers may still be quietly in control. The next move depends on whether Zcash can sustain the momentum of consolidation.
Buyers control the structure even though volume is decreasing
The price of Zcash is currently forming a contracting triangle, indicating short-term indecision between buyers and sellers rather than clear weakness. Importantly, the price still respects the rising trend line that has guided the increase during this period. As long as this structure holds, the overall setup remains constructive.
Volume behavior provides essential context. In Wyckoff-style volume color analysis, blue bars indicate buyer-led activity, while yellow and red bars suggest increasing seller control.
Although the buying volume has quieted down recently, the blue bars are still dominant. A similar quieting was seen after October 17, when buying pressure briefly weakened before Zcash continued with a price rally of over 300%.
The mere decline in buying volume did not stop the trend. As long as the blue bars dominate, the price rally is likely to remain strong despite pullbacks.
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Spot flows reinforce this picture. Spot flows track whether coins are moving into or out of exchanges.
Investments into exchanges suggest potential selling, while outflows indicate accumulation. On December 12, Zcash recorded about $14,260,000 in spot investments into exchanges, meaning coins moved into exchanges.
On December 13, however, the situation sharply reversed to a net outflow of about $17,340,000, indicating coins being pulled out of exchanges.
This change is significant. Coins leaving exchanges reduce immediate selling pressure and often reflect spot buyers' interest during dips rather than during strong rallies.
Despite a moderate decline of about 2.5% in the last 24 hours, Zcash has still risen by about 20% over the last week and over 700% in the last three months. The trend has not broken but is consolidating.
Zcash price levels that define the next move
For the rally to continue, Zcash's price should break through the triangle formation. The key level to watch is $511, which is 24% higher than the current price. A clear daily close above this level would confirm upward pressure and indicate a return of buyer control.
Should this breakout occur, the first upside target is around $549 and the next is $733, which previously capped price rallies in this period. Higher resistance levels are found around $850 and $1,190, but reaching them would require strong sentiment and a favorable overall market situation.
Downside risks are clearly identifiable. If Zcash's price falls below $430, the triangle structure weakens. Strong support is around $391, and if risk aversion spreads in the markets, a path may open all the way down to $301.
