Key Insights:
- Zcash gained over 12% while Bitcoin dropped 7.6%, demonstrating strong buyer control amid market volatility.
- ZEC’s price structure remains solid with steady support at $441 and resistance near $600, signaling continued upward momentum.
- A significant reduction in exchange netflows and increased shielded supply further strengthens Zcash’s market position.
Zcash (ZEC) delivered a remarkable performance today, gaining more than 12% despite a sharp market-wide crash. Bitcoin experienced a significant 7.6% drop, falling to $95,000, but ZEC bucked the trend, showing resilience and maintaining a strong upward momentum. The price action of Zcash has been closely tied to an established uptrend, which began in early October. The coin’s continued strength reflects buyers’ firm control, supported by reduced selling pressure.
Zcash’s price is still firmly moving within a strong uptrend that has guided buyers higher since October. Each time the price touches the ascending support line, it bounces back upwards, signaling strong confidence from buyers. The $441 support level has been crucial in the uptrend, with ZEC bouncing sharply off this zone each time it approaches. Currently, ZEC trades at $566, just under the $600 resistance zone, where it has faced significant challenges in the past.
Indicators Show Buyer’s Dominance
Technical indicators confirm the dominance of buyers in ZEC’s price action. The Money Flow Index (MFI) sits at 51.79, suggesting that buying pressure is steadily increasing. This positive reading aligns with the strong upward momentum seen in ZEC’s price. Furthermore, the Directional Movement Index (DMI) shows a clear buyer dominance, with a +DI reading of 23.22, far above the -DI reading of 10.72. The Average Directional Index (ADX) further strengthens this view with a reading of 52.17, indicating a strong, consistent trend.
Zcash’s exchange netflows have also shifted significantly in favor of buyers. From November 12 to November 13, netflows dropped dramatically from $38.9 million to just $748.69k, tightening liquid supply. This reduction in available coins for sale on exchanges helped mitigate the sell-side pressure during the volatile market conditions. Additionally, shielded ZEC supply now accounts for more than 30% of total circulation, further limiting the availability of coins for quick sale and providing more control to buyers.
Stronger Potential for Upward Movement
The market conditions, along with a tightening supply and stronger buyer control, set the stage for Zcash to break through the $600 resistance level. A sustained push above $600 could open the door to higher price targets, with the $750 zone being the next significant area of interest. As long as buyers continue to defend the rising trendline, the bullish outlook remains intact.
