Zcash is struggling to signal a recovery in recent sessions, with price movements continuing to face pressure below critical resistance levels.
Despite this weakness, large holders are maintaining their composure. They view the pullback not as a danger signal but as a strategic accumulation opportunity.
Zcash whales are accumulating.
On-chain data shows an increasing confidence among Zcash whales. Addresses holding more than $1 million in assets increased their ZEC balances by 21% last week. This group added a total of 3.207 ZEC, raising their assets to 6.681 ZEC, indicating a continued tendency to accumulate during the price decline.
This increase translates to around $1.27 million in additional positions. It showcases the resolve of large investors. Whale accumulation often limits downward price movement by absorbing selling pressure. This behavior reinforces the expectation that major players have already taken positions against potential volatility and price recovery.
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Macro indicators are starting to accompany the on-chain bullish trend. The Squeeze Momentum Indicator shows a squeeze formation and indicates a low volatility period. Such times usually create sudden price movements with the breakout of the squeeze.
Especially the histogram shows that bullish momentum is forming for the first time in over three weeks. If volatility increases while momentum remains positive, we could see a rapid price explosion in Zcash.
Zcash is currently trading at around $396 and remains below the $403 resistance. The Parabolic SAR continues to stay above the candles, indicating that the downtrend is still active. This signal suggests that pressure continues despite improvements on-chain and in momentum.
Strengthening momentum alongside whale accumulation could balance technical weakness. These two factors could accelerate ZEC's movement towards the $442 resistance. It is critical for this level to turn into support. A sustained breakout could open the path for Zcash to $500 and reignite the overall bullish sentiment.
If momentum does not form or a change in whale behavior is observed, risks remain on the table. Ongoing weakness could pull ZEC down to the $340 support level. A stronger wave of selling could extend losses to $300 or even $260. Such a scenario would invalidate the bullish scenario and confirm that the downward trend continues.
