Zcash Price Breakout Delayed as BTC Link Offsets Whale Buying

Zcash price action remains in a bull flag pattern despite a 8% decline over the past week. The altcoin is still up nearly 40% from early December lows but has underperformed Bitcoin, which continues its upward trajectory according to analysis.

Zcash's recent performance reflects a broader recovery trend, even as momentum has cooled. The altcoin has historically shown a negative correlation with Bitcoin, delaying breakouts during periods of BTC strength.

Technical indicators like the Chaikin Money Flow (CMF) suggest weakening buying pressure. ZEC has moved higher while CMF declined between December 24 and January 5.

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Why the Move Happened

Zcash's bull flag formation indicates a consolidation phase following a strong impulse move from early December. As long as this structure holds, the broader breakout thesis remains intact.

The CMF is now hovering near the zero line, a critical threshold for capital inflows and outflows. A sustained move below this level could signal capital outflows and increase downside risk.

Recent unshielding of approximately 202,000 ZEC, or 1.2% of the circulating supply, adds visible supply to the market. While unshielding does not automatically imply selling, it can weigh on price if demand softens.

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How Markets Responded

Derivatives data shows heavier short-term exposure, which can increase volatility risk. The 30-day view, however, favors long positions, indicating continued confidence among longer-term traders.

Zcash's performance continues to be influenced by Bitcoin's strength. The negative correlation between the two assets remains a key factor suppressing ZEC's upside momentum.

What Analysts Are Watching

ZEC must reclaim higher resistance levels to confirm a breakout. A decisive move above $519 would signal renewed strength, while breaking $541 could trigger short liquidations and accelerate gains.

On the downside, $404 remains the critical support level. A break below this level would invalidate the bullish structure and suggest a deeper correction.

Analysts are monitoring capital outflows and on-chain activity for further signals. Whale behavior and overall market sentiment will play a crucial role in determining the next move for Zcash.