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Zcash whales buy the dip after 42% slide – 60% rally possible ONLY IF…

Zcash whales buy the dip after 42% slide – 60% rally possible ONLY IF…

AMBCryptoAMBCrypto2026/01/27 04:03
By:AMBCrypto

Zcash’s bearish stretch began to ease after the token lost roughly 42% over the past two weeks. Recent data pointed to growing bullish interest, driven by whale accumulation, derivatives positioning, and improving price structure.

Whales accumulated during the dip

According to Nansen, the top 100 ZEC wallet addresses have increased their holdings by 8.85%, adding 42,623 tokens. Other whale cohorts have followed the same trend, with their holdings rising by over 5.06%.

Zcash whales buy the dip after 42% slide – 60% rally possible ONLY IF… image 0

Source: Nansen

This accumulation suggests that major crypto players are following a ‘buy-the-dip’ strategy.

At the same time, it highlighted that this could be an ideal buying opportunity, a sentiment reflected in trading volume, which jumped by 43% to $495.35 million, according to CoinMarketCap data.

On top of that, derivatives data suggested traders leaned bullish.

CoinGlass data showed heavy long positioning around the $325.1 level, while shorts clustered near $365.1.

At these levels, traders have built $7.37 million in long-leveraged positions and $5.45 million in short-leveraged positions. This positioning suggests that the current trend and market sentiment for ZEC are bullish.

Zcash whales buy the dip after 42% slide – 60% rally possible ONLY IF… image 1

Source: CoinGlass

ZEC tested key support

By contrast, Spot price action remained the main focus.

Zcash [ZEC] traded near $351, up about 7% on the day, according to TradingView. The daily chart showed ZEC holding the $320 support, a level defended since October 2025.

This marked the fourth retest of that zone.

Historically, the previous visit to this level preceded a rally of over 60% within one month. Even so, history alone did not guarantee a repeat.

Zcash whales buy the dip after 42% slide – 60% rally possible ONLY IF… image 2

Source: TradingView

Technical analysis and expert prediction 

Adding to this bullish outlook, the Money Flow Index (MFI), which measures buying and selling pressure, is continuously rising.

According to the data, its value has recently moved up from the oversold zone to 37.76, suggesting that the upside move is backed by strong volume and signaling a bullish trend for the asset.

However, the price remains below the 50-day Exponential Moving Average (EMA), which suggests that the asset is still in a downtrend. That said, during the last strong rally in ZEC, the price also remained below the 50 EMA for a period.

Of course, optimism extended beyond charts.

A prominent crypto trader, Whale.Guru, suggested on X that ZEC could eventually surge toward $2,000. While the target appeared speculative, it reflected rising confidence around a potential trend reversal.

Such projections remained highly uncertain and depended on broader market conditions.

Final Thoughts

  • The top 100 ZEC wallet addresses have increased their token holdings by 5.06%, hinting at a potential buying opportunity.
  • Price action suggests that ZEC could be poised for its next leg up, similar to past moves, provided it holds the $320 support level.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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