The cryptocurrency market is never short of 'meme coins', but ZEC, which skyrocketed from $70 to $750, achieving a tenfold increase, is definitely a classic case of manipulation by the whales. Many people think this is the outbreak of the privacy coin sector, but in reality, it's a meticulously planned 'liquidity harvesting game'. Today, we will break down the logic of ZEC's market manipulation step by step, explaining every detail from accumulation to distribution—this logic applies not only to ZEC but can also help you see through 90% of market manipulation, avoiding the pitfalls while accurately targeting opportunities.
1. Why did the whales specifically choose ZEC? Three inherent advantages lay the foundation for manipulation.
The dealer's selection of targets is never random but the result of precise calculations. ZEC being chosen by institutions for dealer operations hinges on three 'easily controllable' advantages, which are also our key metrics for filtering potential speculative coins:
Low circulating supply + high controllable potential: ZEC's circulating market value has long been in a 'small but beautiful' state, with circulating chips concentrated in a few addresses, so dealers can achieve control without astronomical amounts of capital. Compared to Bitcoin and other major coins, ZEC's circulating supply is more suitable for 'turning clouds into rain'.
Strong narrative plasticity: Privacy coins are the 'evergreen theme' in the cryptocurrency market. Regardless of how the regulatory environment changes, the stories of 'crypto freedom' and 'anonymous transactions' always resonate with the market. Dealers only need to slightly package news of technological upgrades and regulatory easing to quickly ignite market sentiment.
Low liquidity + shallow market depth: This is the core premise of dealer operations. Thin liquidity means that small funds can create large fluctuations, allowing dealers to accumulate chips without pushing prices up during the accumulation phase, while also using small amounts of capital to trigger massive price surges during the upward phase, and later, by 'creating liquidity', they can complete the harvesting when offloading.
2. Comprehensive Analysis of the Five-Step Method: From $70 to $750 Harvest Path
ZEC's tenfold increase did not happen overnight, but rather through the dealer's precise operations over five stages: 'silent accumulation — testing the waters — violent price surge — main upward wave realization — offloading and wrapping up', with each stage hiding signals that retail investors can capture.
Step One: Silent Accumulation (9.21-9.27) — Trading Volume Anomaly Hides Secrets
The primary goal of the dealer entering the market is to 'quietly gather enough chips', and the most critical signal during this stage is 'increased volume with stable price', which is also our golden starting point for capturing speculative coins.
From the data, on September 21, ZEC's trading volume was only 2.68M (total of buys + sells), with a one-sided buy volume of only 1.34M, representing a typical 'liquidity desert', and market attention was extremely low. However, starting from the 22nd, the trading volume suddenly doubled to 4.31M, and then continuously climbed to 8M and 15M over the next few days — the key point is that while the trading volume continued to increase, the price remained in a narrow range of $70-$90, with no significant increase.
Core Logic: When there are no positive news in the market, yet there is a situation of 'continuously increasing trading volume but stable prices', it is very likely that the dealer is silently accumulating. At this time, retail investor attention is low, allowing the dealer to collect chips at an extremely low cost, and the $70-$90 'vacuum zone' is the dealer's core accumulation area.
Step Two: Testing the Market (9.28-9.30) — Creating Anomalies to Attract Attention
When the dealer has gathered enough chips, they will not directly push the price up but will first test the market reaction through 'testing the waters' while attracting the first batch of 'following orders'. From September 28 to 30, ZEC began to show a slight rise, with a single-day increase controlled between 10%-15%, fluctuating around $90.
At this stage, the dealer's goal is not profit, but rather: ① testing the market's carrying capacity to see if there is a significant sell-off at high positions; ② observing retail investor reactions to filter out 'strong holders' and 'short-term speculators'; ③ creating market attention to make discussions of ZEC emerge on social platforms, laying the emotional foundation for subsequent upward movements. It's like 'bait fishing', throwing in some bait to gather the fish.
Step Three: Violent Price Surge (10.1) — Forcefully Igniting Market Focus
After confirming that the selling pressure is low post-testing, dealers will initiate a 'violent price surge', quickly breaking away from the cost zone and igniting market enthusiasm. On October 1, ZEC directly surged from $90 to $280, with a single-day increase exceeding 200%, while trading volume skyrocketed several times.
The accompanying operations during this stage are even more critical: dealers will simultaneously release good news such as 'easing regulations on privacy coins' and 'Zcash technology upgrades', while arranging KOLs to promote on social platforms. On the surface, it appears to be 'fundamentals driving the rise', but in reality, it is the dealer using a combination of 'upward movement + creating hype' to form a preliminary consensus that 'ZEC is about to explode'. At this time, short-term funds will rush in, and dealers will complete the turnover of some chips during the rise to reduce holding costs.
Step Four: Main Upward Wave (Mid-October to Early November) — Trend Consensus + Capital Stampede
The main upward wave from $200 to $750 is the core stage for the dealer to 'realize profits' and is also the phase where retail investors are most likely to fall into FOMO (Fear of Missing Out). This stage has three typical characteristics that mark the formation of a 'bubble rising channel':
Concentrated positive news: Mainstream media begins to follow reports on the privacy coin sector, and social platforms are filled with calls for 'ZEC targeting $1000', reaching the peak of market consensus.
Precise rhythm control: Dealers do not launch a massive price surge all at once, but adopt a 'pull and rest' model, controlling each correction to within 10%, allowing retail investors to form the perception that 'a drop is a buying opportunity'.
Futures squeeze and stampede: Dealers will use leverage in the futures market to raise futures prices while pushing up spot prices, forcing short sellers to close their positions, creating a 'bullish stampede' that further amplifies the increase.
When ZEC breaks above $150, the trading volume expands but no deep correction occurs, indicating that the market's floating chips have been cleaned up, and all chips have formed a 'bullish consensus', releasing the explosive power of the main upward wave.
Step Five: Offloading and Wrapping Up (Mid-November) — Massive Trading Volume Hides Danger
When everyone believes 'ZEC will return to historical highs', the dealer's task is simply 'to sell chips to the believers'. The core signal of the offloading phase is 'massive trading volume + false breakout':
After ZEC surged to $750, a sudden 'false breakout' occurred — a brief spike followed by a rapid drop, while trading volume exploded massively, far exceeding the average daily trading volume during the main upward wave. At this time, the dealer will coordinate with KOLs to shout '750 is just the starting point' and 'institutions are coming in to buy up', enticing retail investors to take over. The truth behind this is that the dealer locks in profits through 'spot selling + futures short hedging', selling chips to retail investors while making money off the downturn with short positions.
When trading volume begins to shrink and prices fluctuate violently, it indicates that the dealer's chips have basically been cleared, leaving retail investors standing guard at high positions, and the market thus enters a correction cycle.
3. The Core Secret of Dealers: It’s Not About Pushing Prices High, But About 'Creating Liquidity'
Many people believe that the dealer's profits come from 'raising price differences', but that's not the case — the dealer's real core competence is 'creating liquidity'. Without liquidity, no matter how high the increase, it is merely paper wealth. This is also the dealer's greatest vulnerability:
1. Technical Liquidity: If no one is taking over, no matter how high it rises, it's pointless.
Dealers often hold tens of millions or even hundreds of millions of dollars in chips. If the market's daily trading volume is only a few million, directly offloading would lead to a price collapse. Therefore, dealers must create upward movements and generate excitement to amplify trading volume from millions to billions, allowing the market to have enough 'takeover funds'. For example, during ZEC's main upward wave, the daily trading volume surged from 15M to 5000M, allowing dealers to 'sell while rising' and smoothly clear their positions.
2. Psychological Liquidity: If no one chases high prices, the story won't be trusted.
Liquidity is not just about 'having buy orders', but also 'having people willing to chase high prices'. The essence of the dealer's upward movement is not to 'sell at the highest point', but to create a 'profit effect', making retail investors believe 'it can go even higher' and voluntarily rush in to take over. When social platforms are filled with profit screenshots and recommendations for ZEC, 'psychological liquidity' has formed, allowing the dealer to smoothly offload at high prices.
3. Four Tricks of Dealers to Create Liquidity
Creating a profit effect to attract retail investors to follow suit;
Cooperating with exchanges to inflate trading volume, making it seem explosive;
Releasing positive news to create an atmosphere of 'a new cycle is coming';
Self-buying and selling 'matching orders' to artificially inflate market depth, inducing retail investors to enter.
4. Retail Investor Practical Guide: 3 Tricks to Become a 'Dealer Sniper', Not a Follower
Understanding the dealer's logic behind ZEC is important, but even more crucial is translating it into practical abilities. Remember these three tricks, and you too can accurately target dealer opportunities and avoid high-position traps:
1. Accumulation Phase Ambush: Capture the 'increased volume with stable price' signal
In cryptocurrencies with small market capitalizations and themes (such as privacy, AI, Layer 2), filter for 'no good news but continuously expanding trading volume and stable prices', which is likely where the dealer is accumulating. For instance, the trading volume anomaly of ZEC starting on September 22 is the best ambush point.
2. Ride the Main Upward Wave: Monitor 'Correction Magnitude' and 'Consensus Strength'
When the target breaks through the accumulation area, if the correction does not exceed 10%, and the discussion heat on social platforms continues to rise, it indicates that the main upward wave has started, and small positions can follow. However, remember that when a 'massive trading volume + false breakout' occurs in the later stage of the main upward wave, immediately take profits and exit.
3. Avoiding Offloading Traps: Stay Away from 'High Heat + High Valuation' Story Coins
When a cryptocurrency is being promoted by the entire market, and KOLs collectively recommend it, with prices having risen 5-10 times, no matter how appealing the story is, do not enter the market. At this point, the dealer has already entered the offloading phase, and retail investors entering the market are simply taking over. Just like when ZEC reaches $750, believing in the slogan 'target $1000' will only turn you into chives under the sickle.
Conclusion: The essence of the cryptocurrency market is a game of human nature; understanding the dealer is the key to winning.
The tenfold increase of ZEC is never driven by 'fundamentals', but rather the dealer's precise control over liquidity and human nature. The cryptocurrency market is never short of stories, but lacks people who can 'understand the tricks behind the stories'. Remember: what dealers fear the most is 'no one paying attention', while retail investors fear 'blindly following the trend'. Learning to dismantle the logic of dealers and becoming a 'dealer sniper' rather than a 'follower' is the key to long-term survival in the cryptocurrency market.
In the future, I will continue to use my expertise to dissect more dealer charts. Follow me to see through the tricks of the cryptocurrency market and accurately seize opportunities!
