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- Zcash faces growing selling pressure after failing to hold its rebound near $543.
- Whale exits and millions in liquidations have increased bearish market sentiment.
- A short squeeze remains possible if buyers return and force bearish traders to exit.
Zcash faces growing selling pressure after failing to hold its rebound near $543.Whale exits and millions in liquidations have increased bearish market sentiment.A short squeeze remains possible if buyers return and force bearish traders to exit.
Zcash (ZEC) is facing renewed selling pressure after failing to sustain its recent recovery attempt, with traders now watching whether the cryptocurrency can defend the key $400 support level. The privacy-focused altcoin has continued to slide after a brief rebound stalled near $543, pushing market sentiment further into bearish territory.
At the time of reporting, ZEC was trading around $447 after falling to approximately $440 during the latest decline. The move reflects growing weakness across the market, with large traders reducing exposure and leveraged positions being heavily affected.
Whale exits add pressure as ZEC liquidations increase
The recent Zcash downturn has triggered significant losses among leveraged traders. Over the last three days, long positions worth more than $17 million were liquidated, showing that many bullish bets failed as the price moved lower.
In the past 24 hours alone, more than $6.5 million in long positions were wiped out after ZEC slipped below the $450 level. These forced liquidations have increased selling pressure and created a more difficult environment for buyers attempting to regain control.
Large traders have also started adjusting their positions. One notable whale, Garrett Jin, reportedly closed a ZEC long position, securing a profit of about $417,000. The move followed a previous profitable short trade that generated millions in gains, highlighting a cautious approach toward the current market trend.
Zcash traders turn bearish as short positions rise
Market data shows that bearish sentiment is increasing among ZEC traders. According to Coinalyze figures, the Zcash Long/Short Ratio dropped below 1, with short positions making up the majority of open positions.
A higher percentage of short trades suggests that many traders expect additional downside. Instead of attracting strong buying interest, the recent decline has encouraged more market participants to bet on further losses.
This shift in sentiment indicates that confidence in a quick Zcash recovery has weakened, at least in the short term.
Technical indicators warn of continued downside risk
Technical signals are also pointing toward increased selling momentum. Zcash’s Relative Strength Index (RSI) has moved lower after a bearish crossover, falling to around 45. This suggests sellers currently have more influence over price movement.
The Aroon indicator shows a similar pattern, with the downward trend line strengthening while upward momentum fades. Such conditions often signal that a market may remain under pressure unless buyers step in with stronger demand.
If bearish momentum continues, ZEC could revisit levels below $400. However, the growing number of short positions creates the possibility of a short squeeze. A sudden increase in buying activity could force bearish traders to close positions, potentially creating a sharp recovery.
Also Read: Zcash Price Prediction: 3 Signals Suggest ZEC Could Target $600 After $11M Short Liquidation
Zcash is at a critical point as whale exits, liquidations, and bearish technical signals weigh on its price outlook. While the $400 zone remains an important support area, a shift in buying pressure could still trigger a reversal. For now, traders are closely monitoring whether bears maintain control or whether a short squeeze sparks a recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
