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Zcash has faced renewed volatility after a recent decline, but the price action now points to a potential recovery. The ZEC index started to stabilize after the pullback, reducing the possibility of a deeper collapse.
Current market conditions suggest that the altcoin may avoid the predicted 55% collapse and instead resume upward momentum.
Zcash holders accumulate significantly
The ZEC Medal holders have shown strong conviction in the last 24 hours. Stock market data indicate a sharp drop in available supply, as the… ZEC held on to the exchanges by about 48% during this period. This move usually reflects active accumulation, as investors withdraw tokens into private wallets.
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This decrease in stock balances indicates bullish intent. Reduced selling liquidity reduces immediate downward pressure and often precedes a price recovery. Holders appear to be more confident that Zcash is undervalued at current levels, supporting the case for a rebound rather than continued weakness.
Series indicators reinforce this positive transformation. Chaikin’s money flow formed a bullish divergence against the price. while ZEC registered Below the low, CMF continued to make higher highs, highlighting a disconnect between price action and capital flows.
The CMF tracks net inflows and net outflows using price and volume data. The high CMF coupled with the low price indicates the accumulation of the under. This divergence often precedes breakouts, as sustained flows eventually turn into an upward price movement once the selling pressure fades.
The ZEC price can be saved
ZEC is traded on the world stock exchange From $380 at the time of writing this text, and remains limited between $340 and $405. The altcoin broke out of a triangle pattern last week, predicting a potential decline of 55% towards $171. However, market conditions have changed dramatically since then.
This bearish scenario seems less likely to happen. The trends of the accumulation and the improvement of the flow metrics suggest that this model may be wrong. If a move above $450 is confirmed, it will cancel the bearish outlook. A break of this level could open the way towards $504, which would be in line with renewed bullish momentum.
The downside risk remains if sentiment reverses. A resurgence in sales or broader market weakness may result For compression on ZEC Below $340. Under this result, the price can fall towards $300, keeping the bearish pattern active and delaying any significant recovery.
