Zcash (ZEC), at the time of writing, seemed to be approaching a key technical moment on the charts. After three days of a strong bullish run, the token’s price was pressing against a wedge of resistance.
The structure has tightened lately and hence, a breakout may soon be close.
Demand zone sparks strong recovery
The recent bullish move began at the $212 demand zone. Buyers stepped in aggressively at that key level of demand and initiated the explosive move.
Source: TradingViewSince then, ZEC has printed consecutive bullish sessions. Momentum clearly shifted too. This kind of reaction often marks the start of a larger move.
Wedge resistance now in focus
At press time, ZEC was trading at the edge of a wedge consolidation pattern. In fact, price compression has been building for days too.
A daily close above this resistance would be significant. This could confirm a successful breakout and likely attract momentum traders and investor as a result.
Until then, however, the level remains a key barrier to protect current buyers and long-term holders who are holding long positions.
ZEC whales are making moves following significant spot inflows
On-chain data lent more weight to ZEC’s bullish structure. Whales have been actively accumulating across both Spot and Futures markets. This pointed to strategic accumulation more than anything, especially given that the development seemed to align with the altcoin’s price.
If the accumulation spree sustains itself, the altcoin’s bullish move could be amplified further to initiate the anticipated breakout.
Source: CryptoQuantThat’s not all either as ZEC also recorded over $10 million in net inflows within 48 hours.
This is a sign of growing confidence. Not just retail interest, but larger players may be positioning early too.
Source: CoinglassWhat’s next for ZEC?
The setup is clear.
If bulls secure a breakout above the wedge at around $233, ZEC could enter an expansion phase to surge towards the next resistance around $289. Strong inflows and whale backing would support that move.
However, failure to break resistance could extend its consolidation.
Momentum might be favouring the upside at press time. However, confirmation is still needed.
Final Summary
Source: https://ambcrypto.com/zcash-all-about-a-potential-zec-breakout-after-10m-inflows-whales-lead-the-charge/
