Zcash (ZEC) Price Action and On-Chain Flow Dynamics: Near-Term Trend Revalidation and Liquidity-Driven Accumulation

Zcash (ZEC) has emerged as a focal point in the privacy coin sector, driven by a confluence of institutional adoption, regulatory tailwinds, and on-chain liquidity dynamics. Over the past month, ZEC has surged 22.39%, reaching a seven-year high of $420 in October 2025 and climbing to $490.4 as of November 6, 2025, according to a Bitget report. This rally, fueled by a 122% spike in 24-hour trading volume to $4.79 billion, underscores a shift in market sentiment toward privacy-focused assets. However, the coin's technical structure-particularly a potential double-top near $744 and a critical support level at $500-raises questions about the sustainability of its upward trajectory.

Whale Accumulation and On-Chain Anomalies

The past week has seen unprecedented whale activity on Binance, where over $30 million in ZEC was purchased in coordinated transactions. Each buy order averaged $1.2 million for 2,200 ZEC coins, creating a distinctive "dinosaur spine" pattern on 1-second interval candlestick charts, according to a LookonChain analysis. This pattern, identified by on-chain analyst Ai Auntie, suggests large investors are splitting orders to avoid detection, a tactic often associated with strategic accumulation ahead of price breakouts.

Such activity aligns with broader liquidity trends. Zcash's on-chain activity has grown 150% quarter-over-quarter, with 30% of its coins now held in shielded pools, according to a Bitget report. Meanwhile, derivatives traders have added a $13.7 million leveraged long position on Hyperliquid, entered at $352.5 and showing an unrealized gain of $3.1 million, according to a Bitget report. These metrics indicate a growing confidence in ZEC's ability to hold key support levels and revalidate its bullish trend.

Institutional Adoption and Regulatory Tailwinds

Zcash's recent surge is not purely speculative. Grayscale's $137 million investment in ZEC via its ZCSH trust has provided institutional validation, leveraging the coin's optional transparency model to comply with anti-money laundering (AML) regulations, according to a Bitget report. This move coincides with the U.S. Clarity Act and Genius Act, which have created a legal framework for privacy-focused cryptocurrencies to operate within compliance, according to a Bitget report. As a result, ZEC's market cap has outpaced peers like Monero, with the privacy sector's total value rising 2.9% to $25.5 billion, according to a Bitget report.

Exchange inflow metrics further reinforce this narrative. Binance data reveals three major clusters of whale purchases, each spaced minutes apart to avoid triggering circuit breakers, according to a CoinEdition report. These transactions, combined with a 3.55% 24-hour price gain, according to a Bitget report, suggest that liquidity is shifting from speculative short-term trading to long-term accumulation.

Technical Risks and Strategic Implications

Despite these bullish signals, ZEC faces technical headwinds. The double-top formation near $744-a classic bearish reversal pattern-remains unresolved, and a breakdown below $500 could trigger a retest of the 2023 support zone around $200. However, the recent $30 million accumulation event has fortified the $500 level, with on-chain data showing a 40% increase in large wallet balances over the past two weeks, according to a LookonChain analysis.

For investors, the key question is whether ZEC can revalidate its bullish trend through sustained on-chain accumulation. If the $500 support holds and shielded pool activity continues to rise, ZEC could retest its 2021 all-time high of $1,000. Conversely, a failure to maintain liquidity-driven buying pressure may result in a consolidation phase, with derivatives positions acting as a barometer for market sentiment.

Conclusion

Zcash's near-term trajectory hinges on the interplay between whale-driven liquidity and institutional adoption. While regulatory clarity and privacy-focused use cases provide a strong foundation, the coin's technical structure demands vigilance. Investors should monitor the $500 support level and shielded pool growth as critical indicators of trend revalidation. For now, ZEC's on-chain dynamics suggest a market in transition-one where privacy is no longer a liability but a strategic asset.