After enduring a significant 42% downturn over the past two weeks, Zcash (ZEC) is now showing compelling signs of a potential bullish reversal. A confluence of on-chain data, derivatives positioning, and key price action indicators suggests that major players might be betting on a recovery for the privacy-focused cryptocurrency.
Accumulation Hints at Reversal
The recent price dip in Zcash has seemingly triggered a strategic "buy-the-dip" opportunity for large investors. Nansen data reveals that the top 100 ZEC wallet addresses have substantially increased their holdings by 8.85%, adding over 42,000 tokens, with other whale cohorts following suit. This significant accumulation is mirrored by a dramatic 43% surge in ZEC's trading volume, pushing it to nearly $500 million, indicating heightened market interest. Furthermore, derivatives markets show a clear bullish lean, with substantial long positions accumulated around the $325 mark, signaling trader confidence in an upward price movement.
Critical Support and Technical Momentum
Zcash's spot price action reinforces this burgeoning optimism, with the asset successfully retesting and holding the crucial $320 support level. This particular level has historically served as a strong foundation, preceding rallies of over 60% in the past. While historical performance is not a guarantee, the Money Flow Index (MFI) further supports a bullish outlook, climbing from oversold territory and suggesting robust buying pressure. Although ZEC currently trades below its 50-day Exponential Moving Average (EMA) – often a bearish signal – past rallies have demonstrated that the asset can indeed surge even while remaining beneath this benchmark, adding another layer of complexity to its current trajectory.
