A prominent on-chain transaction has caught market attention in relation to a newly formed wallet transferring 50,000 ZEC worth approximately $22.17 million from the Binance exchange, as informed by the market tracker Arkham Intelligence. Such transactions are mostly associated with speculations in the market because they might be linked to strategic trading patterns of big investors.

Source: Onchain Lens

What is particularly notable about this transfer is that the money went into a brand-new wallet, a characteristic that is typically associated with long-term holding, institutional holding, and a lack of selling pressure. In the case of Zcash, a privacy coin that has recently attracted some interest, this type of behavior is typically considered quite bullish.

Also Read: Zcash (ZEC) Poised for Breakout: Key $465 Resistance Could Unlock $500+ Rally

Zcash (ZEC) Approaches a Key Breakout Zone

However, the crypto analyst, Ali, revealed that Zcash (ZEC) is also attracting renewed interest as its price pattern indicates a large bullish move. After a period of range-bound action on the charts, ZEC is currently sitting at a crucial resistance level as the volatility on the charts is compressing, marking the beginning of the expansionary phase.

Source: Ali Charts

The level of 470 is still the crucial level for the validation of the bullish breakout analysis. A strong close above this level will ensure a positive breakout pattern and will change the overall market sentiment in support of the bulls. If so, a bullish rally of 35% may be expected in the market.

Technical Indicators Suggest Strong Bullish Outlook

The breakout in Zcash has been confirmed to be strong, trading well above long-term resistance levels and asserting its hold on the $500 zone. The bullish candles indicate an imminent change in market momentum after an extensive period of market consolidation. The price action is currently trading well above the full moving average ribbon.

Source: TradingView

The moving average ribbon is fully bull-stacked, which implies favorable trend conditions. The former areas of resistance in the $280-$300 region have reversed to major support levels, hence promoting confidence in the positive trend. The RSI is above 60, depicting managed growth, while the MACD remains positive, implying that there may be consolidation before possibly going 30-35% further.

Also Read: Zcash Price Analysis: ZEC Eyes $662 Retest After Major Whale Withdrawal