The Zcash (ZEC) currency is solidifying after an astonishing increase of over 700% in three months, while buyers continue to quietly accumulate outside of exchanges. Despite a recent drop in trading volume, the overall price structure has not broken, as spot trading flows have shifted from inflows to outflows from exchanges.
To sustain the upward trend, a breakout above the $511 level must occur. Conversely, losing the $430 level could weaken momentum.
Buyers still control the structure despite a decrease in volume.
The price of Zcash is currently trading within a "tightening triangle" pattern, reflecting a state of indecision between buyers and sellers in the short term, rather than explicit weakness. Importantly, the price continues to respect the upward trendline that led the rally in this cycle. As long as this structure holds, the overall setup remains constructive.
Volume data also provides additional context, as a slowdown in buying volume alone does not indicate the end of the trend. A similar slowdown occurred previously before Zcash rose over 300%. As long as the buying indicators (blue bars) remain dominant, the upward momentum is likely to remain strong.
Buyers are in control: Currency flows confirm accumulation.
Immediate flow data reinforces this picture. These flows indicate whether coins are moving towards exchanges (suggesting potential selling) or away from them (indicating accumulation).
* On December 12, Zcash recorded inflows of around $14.26 million (movement of coins to exchanges).
* On December 13, this trend sharply reversed to net outflows of about $17.34 million, indicating coins being withdrawn from exchanges.
This sudden shift in outflows reduces immediate selling pressure and often reflects the entry of immediate buyers during pullbacks, rather than distribution and selling into market strength. Despite a slight decline of about 2.5% over the past 24 hours, Zcash is still up about 20% over the past week and over 700% over the past three months. The trend has not broken; it is in a consolidation phase.
Price levels that define the next move.
To maintain the bullish structure, the price of Zcash needs to break out of the triangle pattern.
* The critical level for upward movement is $511. A clear daily close above this level will confirm the continuation of the bullish trend.
* Next bullish targets: Located near $549, then $733, with higher resistance areas at $850 and $1,190.
* Downside risks: If the price of Zcash loses the $430 level, it weakens the triangle structure.
* Strong support: Lies near $391, and a deeper collapse could open the door to the $301 level if risk appetite pressure spreads across the broader market.
