Zcash (ZEC) Surges 10%: What’s Driving the Price Rebound and Can It Last?

Andrew Chen
Zcash

Getting your Trinity Audio player ready...
  • Zcash (ZEC) rebounds by 10% in a sharp recovery, breaking its downtrend.
  • A major ZEC trader flipped from loss to aggressive shorting, indicating market uncertainty.
  • Retail activity rises as traders expect more upside, while futures data remains cautious.

Zcash (ZEC) made a remarkable recovery, surging by more than 10% in the last 24 hours, interrupting its short-term downtrend and attracting fresh attention from both whales and retail traders. The bounce was especially notable as it came right after a period of volatility, marking a significant shift in the market’s sentiment.

A Major Trader’s Shift: From Loss to Aggressive Positioning

Lookonchain data revealed a significant move by one of Zcash’s most active traders, identified as 0x152e. The trader closed a large ZEC long position with an $846,000 loss, only to reverse course shortly after. This time, they placed a leveraged 5x short on 4,574.87 ZEC, signaling a change in strategy. At the same time, the trader made a bold move in the Bitcoin (BTC) market, opening a 20x long position on 367.36 BTC, valued at $31.63 million.

This drastic change in positioning highlights the uncertainty surrounding ZEC’s short-term trend. While the trader is clearly adjusting to market conditions, their heavy losses and subsequent moves suggest a high-risk, high-reward mentality that is typical of traders in volatile markets like crypto.

Surge in Retail Activity Despite Caution in Derivatives Markets

Retail traders seem to have regained confidence after Zcash’s sharp rebound. CryptoQuant’s Spot Retail Activity chart indicated a noticeable increase in trading volume, with traders appearing to expect further upside rather than short-term volatility. This surge in retail engagement often occurs when investors are optimistic about the potential for continued gains.

However, the derivatives market told a different story. According to Coinalyze’s Aggregated Long/Short Accounts Ratio, shorts slightly outnumbered longs, indicating caution among futures traders. The ratio stood at 0.928, suggesting that while retail sentiment is improving, professional traders remain more hesitant about ZEC’s immediate future.

Trend Line Defense: Will Zcash Maintain Its Momentum?

On the daily chart, ZEC bounced sharply from an ascending trend line, marking its third successful defense of the level this month. This technical indicator suggests that ZEC might have more upside potential if the trend line holds as support. Additionally, the Stochastic RSI indicator bounced from oversold territory, pointing to reduced selling pressure and a potential shift toward bullish momentum.

Also Read: Zcash Surges to $600: Privacy Coins Make a Major Comeback

If buyers manage to maintain this support, ZEC could see further gains, potentially reaching the $650–$700 range. However, if the trend line fails to hold, the price could retreat toward the $520 level, reopening the possibility of a deeper correction.

ZEC price analysis
Source: TradingView

Zcash’s recent bounce has created a sense of cautious optimism among retail traders, but futures and derivatives markets remain divided. Traders are keeping a close eye on key technical levels, especially the trend line support, which will likely dictate whether ZEC can push higher in the short term. With sentiment improving on one hand and cautious positioning on the other, the next few days could prove crucial for Zcash‘s price direction.

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.

Related Posts