The price of Zcash (ZEC) is experiencing a notable correction this week. This move follows an impressive bull rally. However, a new Zcash price analysis and miner accumulation suggests the uptrend may not be over. On-chain data, highlighted by analyst “Ali” (@ali_charts), indicates that the selling pressure did not come from miners.
Zcash saw its value fall by 10.74% in the last 24 hours. This pullback erased some gains from a previous rally. During that rally, ZEC reached a high of $25. The asset had risen an impressive 30% from its recent lows. The current correction is considered healthy profit-taking for now. Investors who bought at low levels are securing profits.
The prior rally was driven by a shift in miner behavior. Analysis of the Miners’ Position Index (MPI) showed a clear trend. Zcash miners were accumulating ZEC, rather than selling it immediately. This behavior reduced the available supply on the market. Historically, accumulation by miners often precedes significant upward moves. Furthermore, the 30-day MVRV (Market Value to Realized Value) ratio was at -14.5% before the rally. This indicated that ZEC was significantly undervalued.
Has Zcash’s bullish momentum ended?
Although the price is retreating, the fundamentals remain positive. The MVRV ratio now stands at 7.5%. This means many short-term holders are in profit. The current drop might simply be a reaction to this level. However, the key factor is that miners do not appear to be selling their holdings. As long as miner accumulation continues, the medium-term outlook may remain optimistic. The token’s internal economy relies heavily on the confidence of its validators.
Zcash’s recent drop appears to be a technical pause. It does not seem driven by a fundamental shift in miner sentiment. Investors are watching closely to see if the price support will hold. If the Zcash price analysis and miner accumulation continues to show strength, the rally could resume. Miner behavior will be crucial in the coming days.
