Zcash has struggled to show signs of recovery in recent trading, with price action still under pressure below key resistance levels.
Despite this weakness, large holders appear unfazed, viewing the decline as an opportunity for strategic accumulation rather than a warning sign.
Zcash whales accumulate
On-chain data shows growing trust among Zcash whales. Wallets holding assets of $1 million or more have increased their ZEC balances by 21% over the past week. This cohort added 3,207 ZEC, increasing its total holdings to 6,681 ZEC, indicating sustained accumulation during the price decline.
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This increase represents approximately $1.27 million in additional exposure and highlights the confidence of large investors. Whale accumulation often provides downside support by absorbing selling pressure. The move signals expectations for a rebound as major companies position themselves ahead of potential volatility and price recovery.
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Macro indicators are starting to match the on-chain bullish trend. The Squeeze Momentum indicator shows a period of decreasing volatility as a squeeze is forming. Such phases often precede sharp price movements when pressure is lifted.
Notably, the histogram shows bullish momentum increasing for the first time in over three weeks. If momentum remains positive and volatility increases, Zcash could experience rapid price appreciation.
ZEC price may recover to some extent
Zcash is trading around $396 at the time of writing, below the $403 resistance. The parabolic SAR remains above the candlestick, indicating that the downtrend is still active. This signal reflects continued bearish pressure despite improving on-chain and momentum indicators.
Whale accumulation and strengthening momentum could offset technical weaknesses. These factors could push ZEC toward the $442 resistance level. It is important to convert this level into support. A sustained breakout could pave the way for $500 and restore broad bullish confidence.
Risk remains if momentum fails to materialize or whale behavior changes. If the weakness continues, ZEC could move closer to the $340 support. A further decline could widen the loss to $300 or even $260. Such a move would invalidate the bullish theory and confirm that downside pressure is increasing.
