According to Artemis data, this category produced the highest returns of any sector, with weighted average gains of 22.7% over the past month and 7.5% over the past week.
Among these assets, Zcash (ZEC) stands out. Over the past ten days, ZEC has gained 52.9%, with current positioning suggesting further upside potential remains to be expected.
ZEC enters a speculative premium phase
ZEC’s recent expansion appears linked to its transition to a speculative phase, after a prolonged period of moderate activity. A key on-chain signal supporting this change is the Delta Growth Rate, which tracks the rate of change of market capitalization relative to realized capitalization, effectively reflecting the average acquisition cost of holders.
Over the past thirty days, this metric has increased from 0.332 to 0.474, indicating a strong rise in market capitalization. This suggests renewed capital inflows alongside growing market interest.
Such divergence typically reflects increasing speculative behavior, where market value begins to exceed the underlying fundamentals of the chain. In the short term, this dynamic remains favorable to price increases.
The dynamic also remains strong over all periods. The Multi-Timeframe Momentum indicator, which measures the speed and strength of price movement over different time frames, has been rising steadily.
During the same 30-day window, momentum increased from 0.438 to 1.377, confirming that ZEC has entered an expansion phase, historically aligned with continued price appreciation.
That said, speculative phases often introduce volatility, including short-term downside risk.
Accumulation remains firm
Despite the speculative environment, underlying demand continues to grow, suggesting that investors are still positioning themselves for longer-term exposure.
The Accumulation/Distribution indicator shows that buying pressure began to build around March 26 and has persisted since. During this period, the total trading volume increased from 33.87 million to 34.81 million.
The Chaikin Money Flow (CMF), which identifies whether volume is driven by buyers or sellers, confirmed that bulls remained in control.
At press time, CMF surpassed its previous yearly high of 0.13, a level last seen when ZEC was trading near $520.40. A sustained rise in the CMF indicates a continued inflow of capital, which could support a move towards, and potentially beyond, previous highs.
Key levels to watch
The ZEC’s recent slowdown follows its move toward a key supply wall, marked as supply zone 1 on the chart. This area typically introduces selling pressure, which can cap price action or trigger short-term retracements.
However, given the broader context of increasing accumulation, increasing buyer volume, and on-chain support signals, this resistance is more likely to act as a temporary pause rather than a structural reversal.
Looking ahead, ZEC faces another resistance band at Supply Zone 2. If current momentum is strong enough to absorb selling pressure at these levels, the likelihood of a move to a new high near $560 increases significantly.
