Zcash’s [ZEC] latest rally may be running out of steam, with sellers continuing to push the price past its previous support levels. The move below $1,500 shifted the focus towards $1,400, where buyers now face their first major test after the sharp decline from $1,680.
There is much more to this pullback than just another normal pullback though. As the price dropped below $1,500, there was also a significant amount of selling activity that occurred in conjunction with the breakdown.
This has been fueling additional downward pressure as the price approaches each successive level of support.
Reclaiming $1,400 would signal early signs of stabilization within this market and subsequently ease some of the downward pressure.
However, it might be apparent that the loss of support has affected the recent rally and directed market focus towards lower structural levels.
Is whale activity sending mixed signals?
With the altcoin’s price action declining, whales have been taking different approaches regarding their positioning.
On one hand, a whale purchased a net total of 22,960 ZEC worth approximately $31.7 million across multiple wallets.
Interestingly, the same whale purchased an additional 4,200 ZEC worth approximately $5.84 million, continuing the accumulation.
Notably, this whale’s purchase history pattern indicated that the whale may be taking advantage of the price correction as exposure rather than to exit.
As such, there is now competition between fresh buys and realization of supply. At the time of writing, ZEC was down more than 18% from its recent high.
Together, these moves could result in greater volatility within the market. This, as traders assess whether the whale accumulation can offset the downward pressure. Still, as the accumulation continues, it could offer the market a footing despite the ongoing selling pressure.
Can whale accumulation stabilize ZEC?
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