Zcash has faced renewed volatility after a recent pullback, but price action now points toward a potential recovery. ZEC has begun stabilizing following the decline, reducing the likelihood of a deeper breakdown.
Current market conditions suggest the altcoin may avoid the projected 55% crash and instead regain upside momentum.
Zcash Holders Accumulate Heavily
ZEC holders have shown strong conviction over the past 24 hours. Exchange balance data indicates a sharp reduction in available supply, with ZEC held on exchanges dropping by roughly 48% during this period. Such a move typically reflects active accumulation, as investors withdraw tokens to private wallets.
SponsoredThis decline in exchange balances signals bullish intent. Reduced sell-side liquidity limits immediate downside pressure and often precedes price recoveries. Holders appear increasingly confident that Zcash is undervalued at current levels, supporting the case for a rebound rather than continued weakness.
On-chain indicators reinforce this positive shift. The Chaikin Money Flow has formed a bullish divergence against price. While ZEC posted lower lows, CMF continued to print higher highs, highlighting a disconnect between price action and capital flows.
CMF tracks net inflows and outflows using price and volume data. Rising CMF alongside falling price suggests accumulation beneath the surface. This divergence often precedes breakouts, as sustained inflows eventually translate into upward price movement once selling pressure fades.
ZEC Price Could Be Saved
ZEC trades near $380 at the time of writing, remaining range-bound between $340 and $405. The altcoin broke down from a triangle pattern last week, which projected a potential 55% decline toward $171. However, market conditions have since shifted materially.
The probability of that bearish scenario appears reduced. Accumulation trends and improving flow metrics suggest the pattern may be invalidated. A confirmed move above $450 would cancel the downside projection. Breaking that level could open the path toward $504, aligning with renewed bullish momentum.
Downside risk remains if sentiment reverses. A resurgence of selling or broader market weakness could pressure ZEC below $340. Under that outcome, price may slide toward $300, keeping the bearish pattern active and delaying any meaningful recovery.
