Zcash (ZEC) is under strong downward pressure, but the flow of funds and whale activity indicate a 'buy on dip' trend, although the current buying power is still not enough to reverse the selling momentum.
After the market crash, ZEC fell back to the price range that appeared at the beginning of December, while breaking through short-term EMA lines. In this context, on-chain data and exchange flow metrics are being closely monitored to assess whether accumulation demand can halt the downward trend.
MAIN CONTENT
ZEC has declined for several consecutive days and fell below the 20, 50, and 100 EMA, reflecting a short-term downtrend.
Whales are still accumulating: a new wallet withdrew 8,551 ZEC from Binance, raising total holdings to 12.5 thousand ZEC.
Negative spot netflow for several days and total capital injected is stated to be around 414 million USD, but declining momentum still prevails.
ZEC remains in a short-term downtrend after the market crash
ZEC has created several lower lows over many sessions, falling below the 20, 50, and 100 EMA, indicating that sellers are controlling the short-term trend.
After hitting a low of 335 USD, ZEC slightly recovered but remains weak. At the time of recording, ZEC traded around 347 USD, down 5.98%, continuing a downward trend for about a week.
When the price is below short-term moving averages, it often increases cautious sentiment and creates opportunities for a 'buy the dip' strategy among some investors, especially whales. However, technical signals indicate that selling pressure still prevails, so any bounce needs to be validated by cash flow data and actual demand.
In periods of high volatility like now, traders often monitor funding rates, open interest, and liquidation clusters in derivatives markets to assess squeeze risk; market observation tools on BingX can help track liquidity fluctuations and cash flow behavior without relying on a single indicator.
Whales are buying ZEC as the price drops
Although whale buying activity has decreased after ZEC was rejected at 449 USD, data still shows they continue to accumulate during price weakness.
Since ZEC faced resistance at 449 USD about a week ago, whale activity has significantly decreased. According to data displayed from TradingView, Whale Buy Volume peaked at 152.4 thousand.
Although the buying rhythm is decreasing, implying lower risk appetite, whales still maintain their presence. Average Buy Volume around 29 thousand and holding this level for three consecutive days indicates that buying pressure has not completely disappeared despite a weak market.
Notably, Onchain Lens observed that a newly created wallet withdrew 8,551 ZEC, valued at 3.12 million USD from Binance and may withdraw more.
This wallet currently holds 12.5 thousand ZEC, valued at 4.54 million USD according to Arkham data. In market reality, whales holding positions while increasing accumulation as prices fall often reflect a higher level of 'confidence' compared to short-term trading groups, but do not guarantee a reversal if overall market selling pressure remains large.
Zcash recorded approximately 414 million USD of capital flowing in according to netflow
Negative spot netflow for several days indicates that ZEC is net withdrawing from exchanges, often interpreted as a decrease in available supply for sale and capital trending towards holding.
According to CoinGlass, Zcash Spot Netflow has been negative for 8 consecutive days. At the time of recording, Spot Netflow is -5.87 million USD, reflecting net outflows from exchanges and interpreted as capital flowing into the asset.
During this period, the original content states that investors pumped approximately 414 million USD into the market. Typically, when outflows from exchanges increase, the 'scarcity' level on the exchange may rise, reducing the available supply ready to sell immediately, thus helping absorb profit-taking or panic selling pressure.
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However, net outflow is only part of the picture. If much of the selling pressure comes from investors who do not need to sell through spot markets (e.g., through derivatives or prior spot sales), the price support impact may come slowly. Therefore, netflow needs to be assessed alongside price behavior and momentum indicators.
Current demand is not sufficient to reverse the selling pressure
Although whales are accumulating and netflow is negative, declining momentum remains high; Stochastic RSI has dropped deeply into oversold territory indicating that sellers are dominating in the short term.
When whales buy during ZEC's decline, the downward pressure continues to increase, suggesting that other participating groups are selling more aggressively. The declining momentum remains high, as evidenced by the Stochastic RSI.
This indicator created a bearish crossover a few days ago and dropped to 11.96 at the time of recording, deepening into the oversold region. When Stochastic RSI reaches very low levels, the market usually shows that the sellers are controlling the pace, while any bounce (if any) often depends on whether new buying pressure continues.
With the downward momentum prevailing, the risk of further declines remains present, and ZEC could slide to 301 USD. In a more positive scenario, if demand from whales increases significantly and spreads to other groups, ZEC could recover and test near resistance at 390 USD.
Quick Conclusion
Current data shows two opposing forces: whale accumulation and net outflows from exchanges supporting, but price structure and momentum still lean towards decline. Investors need to monitor whether demand expands beyond the whale group, especially around the 301 USD (downside risk) and 390 USD (near resistance) levels.
Frequently Asked Questions
Why is ZEC declining in the short term?
ZEC declined after the market crash, creating a series of lower lows and falling below the 20, 50, and 100 EMA. This reflects a short-term downtrend and prevailing selling pressure.
What does the whale withdrawing 8,551 ZEC from Binance mean?
Withdrawing ZEC from exchanges is often seen as a signal of accumulation or a shift to longer-term holding. In this case, the new wallet withdrew 8,551 ZEC, raising total holdings to 12.5 thousand ZEC, indicating that whales are still buying when prices drop.
What does ZEC's negative spot netflow imply?
Negative spot netflow means that net withdrawals from the exchange are higher than deposits, often suggesting a decrease in the supply available for sale on the exchange. The original content also mentions a total capital injection of about 414 million USD during the negative netflow period.
What price level is being watched for ZEC?
If the decline continues, ZEC could head towards 301 USD. If buying pressure increases and supports a bounce, the 390 USD area is seen as near resistance that needs to be overcome to improve short-term prospects.
Source: https://tintucbitcoin.com/zcash-co-the-giam-ve-301-usd/
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