Phe buying Zcash withdraws $17 million from exchanges: What will happen next?

In this cycle, Zcash has recorded an impressive increase, surpassing 700% in just three months, before entering a reasonable correction phase. After a strong rally last week, the price is currently showing signs of a slight pullback, raising questions among investors whether the growth momentum is weakening or if this is simply a re-establishment process before continuing the trend.

Although short-term price movements remain unclear, on-chain data and trading volume indicate that the buyers are still quietly controlling the market. Zcash’s next move will depend on whether the current accumulation can transform into a new rally.

Buyers remain in control despite declining trading volume

Currently, Zcash is moving within a tightening symmetrical triangle pattern, reflecting a tug-of-war between buyers and sellers rather than a clear sign of weakening. Notably, the price remains above the main upward trendline of this cycle. As long as this structure holds, Zcash’s medium-term outlook remains positive.

Analyzing trading volume behavior provides important insights. According to Wyckoff methodology, green candles indicate buying-driven activity, while yellow and red candles show increased control by sellers.

Although recent buying volume has somewhat cooled down, green candles still dominate. A similar scenario occurred after October 17th, when buying pressure temporarily weakened, before Zcash continued to rise by over 300%.

A decrease in buying volume does not necessarily mean the uptrend is reversing. As long as green candles prevail, the growth momentum persists despite short-term corrections.

Buyers control Zcash | Source: TradingView Spot flow data further support this assessment. Spot flow reflects coins being transferred onto or off exchanges. Inflows often signal potential selling pressure, while outflows indicate accumulation.

On December 12th, Zcash recorded approximately $14.26 million in inflow to exchanges, suggesting potential selling pressure. However, just one day later, outflows surged to around $17.34 million, reflecting an accumulation trend as investors move coins off exchanges.

Spot buyers surge | Source: Coinglass This shift is very significant because withdrawing coins from exchanges reduces immediate selling pressure and often indicates that spot investors are taking advantage of corrections to buy rather than taking profits during strong price increases.

Although Zcash experienced a slight correction of about 2.5% in the past 24 hours, it still gained nearly 20% over the week and over 700% in the past three months. The uptrend remains intact; the price is currently in an accumulation phase.

Key price levels shaping Zcash’s next trend

To maintain the bullish structure, Zcash needs to break out of the current triangle pattern. A notable price level is $511, representing a 24% increase from the current price. If the daily close surpasses this level clearly, it will confirm a new uptrend and indicate that buyers have regained control.

In case of a successful breakout, the first target will be around $549, followed by $733 – the previous resistance zone that limited previous rallies. Higher resistance levels are around $850 and $1,190, but reaching these would require strong momentum and favorable market conditions.

Zcash price analysis | Source: TradingView Conversely, downside risks are also clearly defined. If Zcash falls below $430, the triangle structure will weaken. A strong support zone lies at $391, and if selling pressure continues to increase, the price could drop significantly to $301.