Reviewed by Reviewed by Saman Waris Updated 10:00 EDT October 8, 2026 Share Share Share Back to Top Since Zcash [ZEC] hit $1,701 in late September, the price action has entered a correction phase. However, large investors continue to bet on higher prices, even as the market structure has broken on the daily chart
As ZEC continues to drop, will the altcoin hold above the demand zone around $1,000?
A wallet accumulated 1,000 ZEC valued at $1.33 million on Binance and withdrew the total amount to an external address. Shortly after, the whale moved the position into Zcash’s shielded pool for privacy
The whale is buying after the altcoins have more than tripled from $478 in mid-August to $1,700 in late September. Thus, this trader might be buying the top
Despite the accumulation, ZEC’s market structure has flipped bearish after breaking below a slanting trendline support. The bears at the lower high (LH) at $1,385 are pushing for a new low, which is around the demand zone at $1,060
Similarly, the CMF is at negative 0.15, indicating capital is flowing out of the altcoin. The Trend Strength Index (TSI) also reinforces the bearish control, showing a reading of -0.86
While the altcoin is declining, the zone at $1,000 might hold. However, if the support fails, the next demand levels are $820 and $478 in the extreme scenario. But why was Zcash hitting lower levels?
The decline in price could be hinting at a distribution phase for Zcash as the broader crypto market cools off
When trading volumes stay high in the later stages of a bull market, it may signal distribution. To back this view, the Futures Volume Bubble Map showed it was overheating as ZEC traded at peak levels
Additionally, Spot Zcash ETF inflows have turned negative, reinforcing the selling activity
Since the last week of September, when the price of the altcoin hit $1,700, Grayscale Spot ZEC ETF has seen either outflows or inactivity. Over $105 million has been sold in total during this period, with about $8.49 million left in the past 24 hours
These outflows are happening even though Winklevoss twins filed to join Grayscale in the ZEC ETF race
Therefore, the altcoin is falling due to a potential distribution phase. Still, it is worth noting that buyers have dominated the Spot Taker CVD over the past three months
Lennox Gitonga is a Financial Market and On-Chain Analyst at AMBCrypto with a Bachelor of Commerce in Finance. As a former equities trader, he applies traditional market rigor to crypto, delivering clear technical and on-chain analysis that explains price action, liquidity, and network behavior driving digital asset trends
