Zcash [ZEC] has experienced a period of structural weakness over the past week following leadership challenges. Over this time, Zcash has dropped from a local high of $528 to a low of $400, reflecting strong bearish pressure.
At the time of writing, ZEC traded at $402, after slightly declining by 1.21% on the daily charts. Interestingly, this period of market weakness created a perfect buying window for whales.
Zcash whale adds $13M in ZEC
After ZEC dropped to a low of $361 a week ago, whale activity collapsed alongside it. Thus, whales pulled capital, reduced exposure, and started selling.
At press time, the Whale Hunter Indicator on TradingView showed a 10.24% downside pressure on ZEC from whales as they started rising.
Shortly after, large entities rushed back into the market and attempted to defend higher levels. As such, the whale momentum index rebounded from 416 to 529, suggesting a whale comeback in the market.
Amid this shift, on-chain monitors observed one major whale purchase. According to Onchain Lens, a newly created wallet withdrew 76,661 ZEC, worth $31.65 million, from Binance.
Such a massive accumulation during a period of market conviction showed whales jumping to accumulate ZEC at a discount.
Furthermore, exchange activities further echoed this rising whale demand in the market. According to CoinGlass, Zcash’s Spot Netflow has been negative for five consecutive days, suggesting increased dip-buying.
At press time, Spot Netflow was -$4.35 million, reflecting higher outflows, a clear sign of aggressive spot accumulation.
Thus, investors defied the market trend and bought ZEC in silence, which explains the recovery from the $361 dip earlier in the week. Often, increased accumulation accelerates upward momentum, a prelude to higher prices.
Can whale buys help struggling ZEC?
In past instances, Zcash gained significantly when whales increased demand but slipped whenever they sold.
This time, however, recent whale purchases have not boosted ZEC’s price. Instead, the altcoin fell from $411 to a low of $411, highlighting ongoing structural weakness.
In fact, the altcoin’s Stochastic RSI made a bearish crossover and dropped to 41, at press time, edging into the bearish zone.
At the same time, ZEC slipped below its short-term moving averages, the 20- and 50-day EMAs further validating bearish pressure.
Such market conditions leave Zcash in a risky position for more losses despite whale accumulation. Thus, if the current trend persists, ZEC will breach the $400 support level, heading towards $392.
Conversely, if whale accumulation translates positively, it could boost the altcoin’s upside momentum and potentially flip EMA50 at $439.
Final Thoughts
- Zcash whale wallet purchased 76,661 ZEC tokens worth $31.65 million.
- ZEC continues to face bearish pressure and risks a dip back below $400.
