Zcash (ZEC), at the time of writing, appeared to be approaching a key technical moment on the charts. After three days of strong uptrend, the price of the token encountered a resistance wedge.
The structure has been tightening lately and therefore a breakout could soon be near.
Demand zone triggers strong recovery
The recent bullish move started from the $212 demand zone. Buyers moved in aggressively at this key level of demand and started this explosive move.
Since then, ZEC has printed consecutive bullish sessions. The dynamics have also clearly changed. This type of reaction often marks the start of a larger movement.
Corner resistance now the center of attention
At press time, ZEC was trading on the edge of a wedge consolidation pattern. In fact, price compression has also been increasing for several days.
A daily close above this resistance would be significant. This could confirm a successful breakout and thus likely attract momentum traders and investors.
However, until then, the level remains a major hurdle to protect current buyers and long-term holders who hold long positions.
ZEC whales move following significant one-off influxes
On-chain data gave more weight to ZEC’s bullish structure. Whales have been actively accumulating in the spot and futures markets. Above all, this indicated a strategic accumulation, especially since the development seemed to align with the price of the altcoin.
If the accumulation frenzy continues, the altcoin’s bullish movement could be further amplified to trigger the expected breakout.
That’s not all since ZEC also recorded more than $10 million in net inflows in 48 hours.
This is a sign of growing confidence. There is not only interest from retailers, but also from larger players who could also position themselves early.
What’s next for ZEC?
The configuration is clear.
If the bulls manage to clear the wedge at around $233, ZEC could enter an expansion phase to head towards the next resistance around $289. Strong influxes and support from whales would support this movement.
However, failure to break resistance could prolong its consolidation.
At press time, momentum could favor upside. However, confirmation is still needed.
