Zcash could face a further 66% decline after large holders cut their stakes by approximately 38% over the past week, intensifying concerns about the token’s near-term outlook.
The privacy-focused cryptocurrency slipped 7% in the past 24 hours and remains down more than 40% month-on-month, even as it has edged 5.8% higher over the past week amid broader market weakness.
On-chain data shows coins moving from private wallets to exchanges, with exchange inflows rising alongside reduced whale holdings, signalling potential distribution pressure.
Technical analysis indicates a bearish flag and pole formation, a continuation pattern that typically resolves with a decline matching the size of the initial drop, implying a possible 66% fall if confirmed.
A four-month bearish divergence has also emerged between price action and the Relative Strength Index, with momentum weakening despite higher highs between October and February.
Blockchain analytics further reveal that the top 100 addresses control roughly 70% of the circulating supply, underscoring concentration risks and the potential fragility of the current price base.
Analysts noted that unless Zcash breaks decisively above resistance to invalidate the bearish structure, a breakdown below key support could accelerate losses and reinforce concerns that recent relative outperformance masks underlying distribution by large holders.
At the time of reporting, Zcash price was $232.17.