The Bitcoin whales on the Chinese markets are secretly accumulating ZEC, which is a departure from their normal Bitcoin-focused portfolios. These whales would normally shun holding any other assets except Bitcoin and are now interested in Zcash due to the market’s potential and optionality. They are not interested in the price but are aiming to position themselves in the markets.
Source: X
But at $504, the token seems less like an opportunity from the world of speculation and more like an undervalued asset waiting to be revalued. Even with Bitcoin leading the way, it seems that the anonymity that Zcash has to offer could be quite lucrative. It’s not out of the question that these whales see the value in $2,000.
Also Read: Zcash (ZEC) Eyes $600 Resistance As Rising Wedge Signals Critical Decision
ZEC Builds Bullish Momentum Inside Rising Channel
However, the crypto analyst, Marzell, highlighted that However, the crypto analyst, Marzell, highlighted that Zcash (ZEC) is showing signs of increasing bullish momentum despite price squeezing between a steadily rising channel. The overall market outlook is positive, with steadily rising higher lows to indicate a boost in investor interest. While buyers are resisting any downward price action, ZEC is kept close to the top edge of the rising channel.
Source: X
Meanwhile, as the price coils underneath the resistance, analysts believe that if a breakout is confirmed, then an accelerated move upward may occur. Notably, if a breakout is accompanied by strong market participation, then the prevailing market view may transition to a more bullish stance. Otherwise, technical analyses based on the defined channels indicate that targets also include the region around $850-$900.
Technical Outlook Shows Stabilization Before Explosive Rally
On the daily chart, the ZEC experienced a strong rally from September till November, while the controlled correction occurred in the month of December. Presently, it is trading around the level of 494, ranging between the levels of 470 and 520, maintaining an overall positive structure. Resistive levels are found at 520 and then at 600, while the asset maintains support at 470-480 levels.
Source: TradingView
It appears that momentum indicators also show signs of stabilization, as opposed to escalation. The MACD is weak and negative, though stagnating, which could imply a weakening of bearish momentum. The RSI has moved above 50, which could strengthen a weak positive trend. Support above 470 could help move prices towards 560-600 levels, while a break could lead to a move down to 430-380 levels.
Also Read: Zcash Price Holds Bullish Structure as Bitwise Adds ZEC to ETF Lineup
