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- A whale trader opened a $9.57M leveraged long on ZEC with targets up to $740.
- Exchange outflows suggest ongoing accumulation and reduced selling pressure.
- Heavy short positioning could fuel a powerful ZEC short squeeze if resistance breaks.
Privacy-focused cryptocurrency Zcash has returned to the spotlight after a whale trader opened a massive 10x leveraged long position worth nearly $9.57 million. The trade involved more than 17,000 ZEC and targeted aggressive upside levels between $545 and $740, even as the asset struggled to break through resistance near $700.
The move immediately caught market attention because large leveraged positions near resistance often increase volatility. With liquidation sitting close to $537, even moderate price swings could trigger sharp market reactions.
Still, the whale’s positioning suggests that some high-capital traders expect ZEC to continue its recovery trend despite recent cooling across the broader crypto market.
Exchange Outflows Tighten Available Supply
On-chain data added further support to the bullish narrative. Recent exchange netflows showed roughly $1.3 million worth of ZEC leaving trading platforms, continuing a pattern of negative netflows seen in recent sessions.
Exchange outflows are commonly viewed as a sign of accumulation since investors typically move assets into private storage rather than keeping them ready for sale. Earlier rallies saw heavy inflows exceeding $60 million, but the latest trend points toward tightening exchange supply instead.
This reduction in available sell-side liquidity could strengthen bullish momentum if demand returns. The whale’s leveraged long position also aligns with this broader accumulation behavior, reinforcing the idea that larger market participants still expect upside continuation.
Can ZEC Hold the Key $542 Support?
Technically, ZEC remains in a strong position as long as it holds above the critical $542 support zone. After failing to sustain momentum above $700 earlier this month, the asset entered a consolidation phase while maintaining its broader bullish structure.
The daily chart still shows higher support levels holding above the major breakout region near $400. However, price action has started compressing beneath resistance, a sign that buyers are becoming more cautious after the recent vertical rally.
Momentum indicators also suggest slowing bullish acceleration. The MACD remains in positive territory, but weakening histogram bars indicate fading short-term strength.
Even so, bulls continue to control the broader trend unless support breaks decisively.
Heavy Short Positions Could Trigger a Squeeze
Derivatives data reveals another important factor supporting the bullish case: traders on Binance remain heavily short-biased.
More than 67% of top trader accounts currently hold short positions, while the long/short ratio has dropped below 0.5. Historically, crowded bearish positioning during an uptrend can create conditions for a short squeeze, where rising prices force traders to close losing short positions rapidly.
If ZEC successfully reclaims the $700 resistance area, that imbalance could fuel another sharp rally toward the whale’s upper targets near $740.
Also Read: Zcash Eyes Quantum-Proof Future as ZEC Price Explodes 73%
ZEC’s market structure still leans bullish despite signs of cooling momentum. Exchange outflows continue reducing available supply, whales remain aggressively positioned for upside, and heavy short exposure could amplify volatility if resistance breaks.
For now, the $542 support remains the key level to watch. As long as buyers defend that zone, ZEC may still have room for another breakout attempt in the sessions ahead.
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
