Artemis data indicates that this sector has delivered the highest returns compared to any other, with weighted average gains of 22.7% over the past month and 7.5% over the last week.
Among these assets, Zcash [ZEC] has stood out. In the last ten days, ZEC has seen a remarkable gain of 52.9%, and current trends suggest that there is potential for further upside.
ZEC’s Transition into a Speculative Phase
The recent surge in ZEC’s value seems to be linked to its shift into a speculative phase after a period of subdued activity. An important on-chain signal supporting this shift is the Delta Growth Rate, which measures the rate of change in market capitalization relative to realized cap.
Over the last thirty days, this metric has increased from 0.332 to 0.474, indicating a significant rise in market capitalization. This suggests a renewed interest from investors and potential capital inflows.
This divergence often signifies a surge in speculative behavior, where market value starts to outpace underlying fundamentals. In the short term, this trend is likely to support further price growth.
The momentum remains robust across different timeframes. The Multi-Timeframe Momentum indicator has been steadily increasing.
Within the same thirty-day period, momentum surged from 0.438 to 1.377, confirming that ZEC is in an expansion phase, historically associated with continued price appreciation.
However, speculative phases often bring volatility, including the risk of short-term pullbacks.
Steady Accumulation Trends
Despite the speculative environment, there is a consistent build-up of demand, indicating that investors are positioning for long-term exposure.
The Accumulation/Distribution indicator reveals that buying pressure started to strengthen around March 26th and has continued since then. During this period, total traded volume rose from 33.87 million to 34.81 million.
The Chaikin Money Flow (CMF) indicates that bulls are still in control, as the volume is being driven by buyers.
Currently, the CMF has surpassed its previous yearly peak of 0.13, a level last seen when ZEC was trading near $520.40. This sustained increase in CMF suggests ongoing capital inflow that could propel ZEC towards, or even beyond, previous highs.
Critical Resistance Levels
ZEC’s recent slowdown coincides with its encounter with a significant supply wall, identified as Supply Zone 1 on the chart. This zone typically introduces selling pressure that might limit price movements or trigger short-term corrections.
However, considering the overall trend of increasing accumulation, rising buy-side volume, and positive on-chain signals, this resistance is more likely to serve as a temporary pause rather than a reversal.
Looking ahead, ZEC will encounter another resistance zone at Supply Zone 2. If the current momentum can withstand selling pressure at these levels, the likelihood of reaching a new high around $560 significantly increases.
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