Zcash (ZEC) has recently navigated a turbulent market, marked by structural weakness and a significant price dip. Amidst this downturn, a compelling narrative has emerged: the aggressive re-entry and accumulation by major "whales," large investors looking to capitalize on the lower prices.
Strategic Whale Accumulation During a Dip
Following a substantial drop from $528 to $400, and even touching $361, Zcash saw an initial retreat in whale activity. However, this weakness soon transformed into a strategic buying opportunity for large entities. A notable event was the withdrawal of 76,661 ZEC, valued at $31.65 million, by a newly created wallet from Binance. This massive accumulation, confirmed by a rebound in the whale momentum index and five consecutive days of negative Spot Netflow, clearly indicates aggressive dip-buying by major investors seeking ZEC at a discount.
Accumulation Fails to Stem Bearish Tide
Despite the significant whale accumulation, Zcash's price has not responded with the expected upward momentum seen in previous instances. Instead, the altcoin continues to grapple with intense bearish pressure. Technical indicators reinforce this sentiment, with ZEC's Stochastic RSI making a bearish crossover and dropping into the bearish zone, and the price falling below its 20- and 50-day Exponential Moving Averages. This unusual divergence—substantial whale buying failing to prop up the price—leaves Zcash in a precarious position, facing the risk of further declines below the critical $400 support level, even as large investors silently amass tokens.
