Key Takeaways
What factors are driving renewed optimism for ZCash despite its recent 14% drop?
Rising miner profitability, increased hash rate, and surging trading volume are fueling bullish sentiment.
How are investors responding to ZEC’s market shift?
Spot investors have resumed accumulation, with major holders like Arthur Hayes signaling strong confidence.
ZCash [ZEC] has seen one of the sharpest drawdowns in the past day. Interestingly, market odds point to a possible rally despite the 14% decline.
Miner activity and retail interest are expected to play a key role in supporting the asset and driving any potential recovery. Here’s how it could unfold.
Price dynamics: ZEC to $1,000?
An in-depth look at on-chain price dynamics shows ZEC has a strong tendency to move above $1,000 before meeting a major resistance point, typically the local top.
This outlook follows ZEC’s successful breakout past several reversal points on the chart, as the asset trends toward the “Top Price” zone.
Source: Alphractal
A rally toward the $1,000 region would mark a new all-time high for the asset and, more importantly, place it in price discovery.
Notably, this level represents the asset’s historical peak, suggesting a potential decline could follow once it reaches that zone.
Factors supporting ZEC’s upside
Several factors could significantly influence ZEC’s momentum in the market.
One key metric is the Puell Multiple, which measures miner profitability on an annualized basis. Current readings indicate that miners remain profitable, with no visible signs of large-scale selling yet.
Source: Alphractal
The network’s hash rate has also risen sharply, implying that more transactions are being verified by miners.
This trend suggests growing network activity, supported by a surge in trading volume. Over the past 24 hours, ZEC’s trading volume has jumped 138% to $4.61 billion, signaling renewed market participation.
Spot investors return
Spot investors have reentered the market after several days of consistent selling between the 3rd and the 7th of November, during which they sold approximately $153.49 million worth of ZEC.
The trend has since reversed. In the past 24 hours at the time of writing, spot investors accumulated $34.46 million worth of ZEC, an encouraging shift that reflects renewed confidence, particularly among long-term holders.
Source: CoinGlass
Investor sentiment also appears to be strengthening. Arthur Hayes, co-founder of BitMEX, revealed that his family office, Maelstrom, now holds ZEC as its second-largest liquid position after Bitcoin.
“Due to the rapid ascent in price, $ZEC is now the 2nd largest LIQUID holding in @MaelstromFund’s portfolio behind $BTC,” Hayes said.
This reinforces a bullish outlook for ZEC and suggests that spot investor confidence could continue to expand in the coming days.
