Zcash has recorded a 16% rebound after reaching local lows recently. Analyst Ananda Banerjee reported that Zcash whale accumulation has been the main driver of this movement. However, the asset still faces significant structural risks this week. For this reason, the overall outlook for investors remains quite uncertain.
On the other hand, the price found vital support last January 10. Large holders increased their positions by 39% during the last seven days. This represents an investment close to six million dollars in assets. Likewise, smaller wallets also increased their total holdings significantly. In this way, a renewed interest from large capitals is observed.
Furthermore, a hidden bullish divergence was observed in the relative strength indicator. While the price marked higher lows, the RSI showed a decreasing weakness. Therefore, this technical signal anticipated the current price recovery. It is also noted that selling pressure appears to be gradually diminishing. However, the market structure still presents signs of danger.
Large investors try to sustain the price against a bearish technical structure
On the other hand, the asset trades below the exponential moving averages. The 20-day average threatens to cross below the 50-day average. Therefore, there is very strong technical resistance at higher levels. Because of this, the path to a full recovery will be difficult. Traders must closely monitor these specific trend indicators.
Likewise, the intensity of capital outflows from exchanges has decreased. Net outflows went from 35 million to only 10 million dollars. Therefore, the sentiment of the retail sector shows signs of fragility. Similarly, demand appears to be stagnant in recent hours. This suggests that the current rebound could lack sufficient strength.
Will the support of large investors manage to avoid a fall towards 300 dollars?
It is also important to note that the smart money index warns caution. This indicator of blockchain technology suggests that informed traders are being cautious. Therefore, the risk of a further correction remains in effect. However, some derivatives traders are opening long positions. This contradiction generates high volatility in the price of the asset.
Finally, the project must reclaim the $408 level very soon. If the price breaks the $361 support, $300 will be inevitable. Therefore, the market’s gaze is fixed on critical levels. The Zcash whale accumulation will be the determining factor soon. The next few days will be fundamental to define the long term trend.
