This chart helps define major bottoms and tops in Zcash (ZEC), making it very useful for estimating whether the asset is expensive or cheap. It is based on the CVDD model implemented by the Research team at Alphractal.

But another chart that stands out is the MVRV Z-Score, which recently made a pullback very close to 0. This happened because, during the latest drop, ZEC tested its Realized Price and then rallied more than 90% after the dump, showing that this on-chain level acted as a very strong support.

However, if $ZEC drops below $360, it will likely return to a more aggressive Bear Market phase.

This is a key region that bulls need to defend. Otherwise, we will need to analyze the CVDD Channel more closely again to identify lower on-chain levels, which currently range from $48 to $170.

The $48 level would be the most aggressive scenario, and interestingly, it was also the level that marked the bottom in the previous cycle.

In other words, ZEC needs to stay above $360. Otherwise, it may enter a strong capitulation phase.

Alphractal.com