The accumulation of ZEC by holders sets the stage for a breakout action to $800.

The Zcash (ZEC) price has been sideways in recent days, reflecting an accumulation process after a period of strong volatility. Although this slowdown can be seen as a bearish signal, it is often a sign of underlying strength following an uptrend.

The price maintaining stability around the current zone indicates that buying pressure is still being supported, and recent investor behavior further reinforces a positive outlook for ZEC.

Holders continue to accumulate

According to data from exchanges, the circulating supply of ZEC has decreased significantly. Specifically, Nansen’s statistics show that the amount of Zcash on centralized exchanges has dropped by 20.75% in just 24 hours. This decline reflects large capital outflows from exchanges, which is usually a sign of accumulation rather than distribution.

When coins are transferred out of exchanges, selling pressure typically diminishes. Investors tend to move assets to personal wallets when they expect prices to rise in the future. This indicates growing confidence among ZEC holders, who are willing to hold long-term rather than sell at current levels.

Source: Nansen Continuous outflows from exchanges often precede strong price rallies. The reduction in liquid supply can cause prices to react more strongly when demand increases. For Zcash, this accumulation trend is further strengthening the bullish outlook during the current accumulation phase.

Derivative market sentiment turns positive

Data from the derivatives market also shows a clear shift in trader positions. For nine consecutive days, ZEC futures contracts have mostly been in short positions, keeping funding rates in negative territory – reflecting a bearish sentiment among leveraged traders.

However, in the past 24 hours, this trend has reversed. Funding rates have turned positive, indicating that long positions have overtaken short positions. This shift suggests traders are now expecting an upward trend rather than continuing to decline.

ZEC deposit rate | Source: Coinglass Positive funding rates indicate improving market sentiment, with traders willing to pay fees to maintain long positions. When derivatives market sentiment aligns with the accumulation trend in the spot market, growth momentum is often more strongly driven. This consensus reinforces the view that ZEC is preparing for a new rally.

ZEC faces a breakout opportunity

Currently, ZEC is trading around $512, moving within an ascending wedge pattern – a structure that often ends with a breakout. If it surpasses the resistance zone, the price could increase by nearly 38%, targeting $802.

The breakout potential is being reinforced after ZEC tested and bounced from the lower trendline. Technical support remains solid, indicating that buying pressure still dominates. Combined with the accumulation trend and improved derivatives market sentiment, the probability of continuing the upward trend is higher. To confirm a breakout, ZEC needs to move above the $E3@ support level.

![Việc tích lũy ZEC tạo tiền đề cho hành động breakout lên 800 đô la ]$600 https://img-cdn.gateio.im/webp-social/moments-2f8f395e2bb60e0af7408c0ea715889f.webp(ZEC Price Analysis | Source: TradingView However, downside risks still exist if market sentiment suddenly reverses. Heavy selling or a failed breakout could exert pressure, causing the price to fall sharply. If ZEC drops below $500, the bullish structure will weaken. In that case, the price could fall to the $442 zone, invalidating the current bullish thesis.