ZEC Rally Gains Strength as On-Chain Activity Sends Mixed Signals

TLDR:

• ZEC’s MVRV ratio climbed to 1.59 as the asset traded above its realized price level
• Rising open interest and short liquidations continue supporting the latest ZEC price expansion
• Alphractal warned declining active addresses may weaken the sustainability of the current rally
• Trader Ardi identified the $700 region as the next major resistance zone for ZEC price action

ZEC has extended its sharp recovery as traders monitor rising derivatives activity and improving profitability metrics.

Data shared by Alphractal showed the privacy-focused cryptocurrency trading in aggregate profit territory after its MVRV ratio climbed above 1.0.

The token also posted strong daily gains while reclaiming levels above its 200-day moving average. However, weakening network activity has raised questions about the sustainability of the latest move.

ZEC Price Rally Accelerates as MVRV Turns Bullish

Alphractal said ZEC’s MVRV ratio reached 1.59 while the asset traded near $632.88. The realized price stood around $367.50 according to the firm’s shared metrics.

The platform described the current MVRV structure as constructive rather than euphoric. Historical ZEC cycle tops reportedly formed above 3.5 on the same metric.

Alphractal also tracked ZEC’s Net Unrealized Profit and Loss indicator, known as NUPL. The metric currently sits inside the “Optimism” zone according to the report.

The firm stated previous entries into that phase aligned with continued upside before reaching stronger euphoria conditions. ZEC also gained 7.19% during the latest 24-hour trading period.

Price action continued trading well above the 200-day moving average. Alphractal described the broader trend structure as clearly bullish on higher timeframes.

Derivatives data also showed rising participation across futures markets. Open interest increased on both daily and weekly measurements according to the report.

The platform additionally highlighted a 0.56 long-to-short ratio alongside increased short liquidations. That combination often appears during short squeeze-driven market moves.

ZEC Trading Activity Diverges From Network Usage Metrics

Despite the strong price recovery, Alphractal identified weakening on-chain activity as a risk factor. Active addresses and transaction counts reportedly declined sharply over the past week.

The report suggested the rally currently relies more on derivatives positioning than organic network growth. Alphractal described the move as real but structurally fragile.

According to the framework shared in the post, continued upside depends on either stronger usage metrics or sustained leverage flows. The firm said active address trends remain the key confirmation signal.

Crypto trader Ardi also discussed ZEC’s broader technical structure in a separate post. He described the chart as one of the stronger macro recovery setups currently visible across the market.

Ardi said ZEC completed a V-shaped recovery into the upper range near $680 after reclaiming its prior corrective structure. However, he noted that a clean break above the $700 resistance zone remained necessary before stronger continuation signals appear.

The trader pointed toward the $740 area as the next upside region if support confirms above resistance. The comments followed one of ZEC’s strongest recovery periods in recent months.

Alphractal maintained that extreme funding conditions without improving address activity could become an exit signal for traders. The firm said leverage-driven rallies often weaken once participation fades.

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