Zcash has posted a 230% gain over the past month and climbed nearly 1,200% in the last three months, breaking out of a technical flag pattern on Oct. 24 as large wallet holders continue to accumulate the privacy-focused cryptocurrency. The token traded near $518 on Nov. 6, marking an 18% increase in 24 hours, while exchange inflows dropped 91% in two days — suggesting retail selling pressure has eased.
Key Market Indicators
- •Zcash surged 230% month-over-month and 1,200% over three months, with the Chaikin Money Flow indicator at +0.21 signaling strong institutional buying momentum.
- •Exchange inflows plummeted from $41.79 million on Nov. 4 to $3.66 million on Nov. 6, indicating retail traders have largely stepped back from selling.
- •Technical indicators point to a next resistance level at $594, with a potential target of $847 representing a 60% gain from current prices.
Large Wallet Activity Drives Rally as Retail Pressure Fades
The Chaikin Money Flow indicator broke out of its downtrend on Nov. 3, confirming renewed buying from large investors and institutional participants. CMF tracks whether capital from substantial wallets flows into or out of an asset. The metric currently sits at +0.21, well above the zero line that typically separates accumulation from distribution phases.
Exchange data supports this shift in market dynamics.
Spot netflow figures show Zcash inflows to exchanges fell from $41.79 million on Nov. 4 to just $3.66 million two days later. The decline suggests smaller holders have reduced selling activity, potentially allowing bigger buyers to push prices higher without facing significant resistance from profit-taking.
The On-Balance Volume indicator, which adds trading volume on rising days and subtracts it during declines, has maintained an upward trajectory since early October.
OBV found support around Oct. 30 and has not broken below that level during subsequent price dips. Rising OBV alongside rising prices typically indicates genuine accumulation rather than speculative momentum driven by leverage.
Technical analysts use CMF to gauge the strength of buying or selling pressure by measuring the relationship between closing prices and trading ranges. A positive CMF reading above 0.20 generally signals strong demand. The combination of elevated CMF, plunging exchange inflows and climbing OBV points to sustained institutional interest in Zcash, leaving limited room for a near-term reversal.
Technical Breakout Points to Higher Price Targets
Zcash broke through a flag pattern on Oct. 24, triggering the current rally phase without a meaningful consolidation period. Flag patterns form when an asset experiences a sharp move followed by a period of sideways trading, and technical traders often interpret breakouts from these formations as continuation signals.
The next resistance level sits at $594, aligned with the 1.618 Fibonacci extension — a technical projection derived from the initial rally leg. Fibonacci extensions help traders identify potential price targets beyond the previous high. A move above $594 could open a path toward $847, which corresponds to the 2.618 Fibonacci level and would represent a 60% advance from current trading levels.
Support has held at $384 since Nov. 1, absorbing selling pressure during brief pullbacks.
This level would need to fail on a sustained basis before raising concerns about a deeper correction. Volume data and money flow metrics suggest such a breakdown remains unlikely in the immediate term.
Zcash, a privacy-focused cryptocurrency that uses zero-knowledge proofs to shield transaction details, has outperformed most digital assets during the recent market recovery. Zero-knowledge proofs allow one party to prove they possess certain information without revealing the information itself. The technology enables Zcash users to conduct transactions without exposing sender, receiver or amount data on the public blockchain.
Outlook for Zcash
Data from multiple technical and on-chain indicators suggests the Zcash rally maintains momentum, backed by volume and institutional buying rather than retail speculation. The 91% drop in exchange inflows combined with positive money flow readings and rising on-balance volume point to continued accumulation. Price targets of $594 and potentially $847 remain in play as long as support at $384 holds, though traders should monitor these levels closely as volatility typically increases during extended runs.