Zcash’s Stumble: Big Money Hides, But Retailers Rally!

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Zcash (ZEC) has been the belle of the ball among privacy coins, having surged a staggering 470% over the past three months. The token is now trading near $250 after a brief pullback, cooling off from its recent surge but still holding most of its gains. 💸🎩

At first glance, the pause (even one since yesterday) might seem like fading momentum. But the signals suggest otherwise. Whales are taking a step back, retail conviction remains strong, and technical patterns continue to hint that the broader uptrend is far from over. 🎭

Whales Ease Off, But Retail Traders Ride The Conviction

Large investors have started to slow their buying. The Chaikin Money Flow (CMF) – which measures large-money inflows – has dropped sharply from over 0.45 at the start of October to around 0.04 now. This indicates whales have begun taking profits after driving ZEC’s earlier rally. 🐘

Still, this is not entirely bearish. Even when CMF dropped earlier this month, ZEC’s price kept climbing. The token’s rally is no longer fully dependent on whale activity – retail traders are filling in the gap. 🐦

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Over the past 24 hours, ZEC’s net flow flipped from +$18.14 million to -$4.06 million, a 122% swing toward outflows. That means more tokens are leaving exchanges, suggesting that holders are buying more. ⚖️

Smaller traders appear to be accumulating while large holders reduce exposure – a pattern that often helps sustain rallies. Adding to that conviction, Zcash’s shielded pool recently surpassed 4.5 million ZEC, locking nearly 27.5% of its total supply. 🐠

This surge in shielded holdings shows that more users are moving coins into long-term private storage rather than trading them, tightening market supply and reinforcing confidence in Zcash’s privacy technology. 🧠

ZEC Price Structure Still Shows Strength Beneath The Surface

ZEC’s price action shows that this pullback is likely a pause, not a breakdown. The structure remains healthy, and multiple signals suggest the uptrend is holding. 👔

While the full breakout projection of the flag setup points to an ambitious 547% potential move based on the pole’s height, that Zcash price target remains far-fetched for now. Nearer levels like $284, $314, and $441 look more realistic as upcoming resistance zones. 🚀

The Relative Strength Index (RSI) – which measures the strength and speed of price changes – highlights that shift clearly. A few days earlier, around October 16, a hidden bullish divergence appeared, where the RSI made lower lows while the price made higher lows. The result was a short-term rally that pushed ZEC up before this latest pullback. 🧠

Now, a similar divergence is forming again. The price has continued making higher lows while RSI dips slightly – a setup that often hints at trend continuation. If the pattern repeats, ZEC could soon resume its climb toward $284 and $314, the next resistance levels. 🎭

However, if the price drops below $247 and then $209, it could signal temporary weakness. A move under $187 would break the bullish structure and expose the ZEC price to a deeper correction. ⚠️

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2025-10-21 21:37