Zcash (ZEC) has seen a period of structural weakness over the past week following leadership challenges. During this period, Zcash fell from a local high of $528 to a low of $400, reflecting strong bearish pressure.
At the time of writing, ZEC was trading at $402, following a slight decline of 1.21% on the daily charts. Interestingly, this period of market weakness has created an ideal buying window for whales.
Zcash whale adds $13 million to ZEC
After ZEC fell to $361 a week ago, whale activity collapsed along with it. So the whales withdrew capital, reduced their exposure and started selling.
At press time, the Whale Hunter indicator on TradingView showed 10.24% downward pressure on ZEC from whales as they began to rise.
Soon after, large entities rushed into the market and attempted to defend higher levels. Thus, the Whale Momentum Index rebounded from 416 to 529, suggesting a return of whales to the market.
Source: TradingView
Amid this shift, on-chain monitors have observed a major whale buy. 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 that whales were jumping to accumulate ZEC at a discount.
Additionally, trading activities have echoed this growing market demand for whales. According to CoinGlass, Zcash’s spot net flow has been negative for five consecutive days, suggesting an increase in dip buying.
Source: CoinGlass
At press time, the net cash flow stood at -$4.35 million, reflecting higher capital outflows, a clear sign of aggressive spot accumulation.
So, investors defied the market trend and silently bought ZEC, which explains the recovery from the $361 drop at the start of the week. Often, increased accumulation accelerates upward momentum, a prelude to rising prices.
Can whale purchases help a struggling ZEC?
In the past, Zcash gained significantly when whales increased demand, but declined with each sale.
This time, however, recent whale purchases have not caused the price of ZEC to rise. Instead, the altcoin fell from $411 to $411, highlighting continued structural weakness.
Source: TradingView
In fact, the altcoin’s stochastic RSI made a bearish crossover and fell to 41, at press time, sliding into the bearish zone.
At the same time, ZEC has fallen below its short-term moving averages, with the 20- and 50-day EMAs once again validating the bearish pressure.
Such market conditions put Zcash in a risky position in case of further losses despite the accumulation of whales. So, if the current trend persists, ZEC will break through the $400 support level, heading towards $392.
Conversely, if whale accumulation translates positively, it could boost the altcoin’s bullish momentum and potentially tip the EMA50 to $439.
Final Thoughts
- The Zcash whale wallet purchased 76,661 ZEC tokens worth $31.65 million.
- ZEC continues to face bearish pressure and risks falling back below $400.
