TLDR:
- The ZEC price rebounded 17% following a massive drop triggered by rumors of internal restructuring.
- Large investors and “mega whales” took advantage of the discount to accumulate over $3.2 million.
- Technical analysis warns of a rising wedge pattern with a potential 30% correction risk.
Following an unexpected “shock” in its governance structure, the Zcash (ZEC) network has experienced an extremely volatile week. A sell-off was triggered by rumors regarding the exit of the development team, which sank the asset by 20%, reaching levels near $380.
However, it was later clarified that the move was a strategic restructuring rather than a protocol failure. Consequently, Zcash regained ground, trading again above $440 thanks to a 17% rebound.
This downward movement was seen as a golden opportunity for large holders. On-chain data indicates that whales increased their positions by 4.49%, while “mega whales” were even more aggressive, increasing their holdings by 19.2%.
In total, an accumulation of approximately $3.2 million in ZEC is estimated during the dip, which helped stabilize market sentiment and halt the initial crash.
Technical Risks and Short-Term Development Activity
Despite strong support from large investors, the technical chart suggests caution for any short-term Zcash price prediction. Currently, ZEC is within a rising wedge formation on the 12-hour timeframe—a structure that traditionally precedes bearish breakouts.
If the price fails to stay above the lower trendline, the asset could face an additional 30% correction, with potential targets at $360 and $309.
A critical factor analysts are monitoring is development activity, which has shown a slight decline since late December. Historically, the value of ZEC has been closely linked to constant innovation within its privacy protocol.
In summary, for the bullish momentum to resume and validate a positive Zcash price prediction, developer activity must stabilize. For now, the market remains in a precarious balance between decisive institutional accumulation and a technical structure that still shows signs of fragility.
