Zcash (ZEC) is experiencing strong activity from large investors. Whales have withdrawn significant amounts of ZEC from exchanges and increased leveraged long positions. This suggests market participants are preparing for a major price shift soon.
Recently, a new wallet withdrew 3,956 ZEC, worth $1.55 million, out of Binance. This move decreases the sell-side liquidity in the short term. Such behavior is normally an indication of accumulation rather than short-term trading. It states that whales are setting themselves up for long-term returns instead of short sales.
As of press time, ZEC is trading at $405, which is a 1.47% increase in the past 24 hours. Nevertheless, the trading volume has been reduced by 13.59%, and it is currently standing at $594.42 million. Over the last week, the ZEC coin price has declined by 20.78%.
Source: CoinMarketCap
ZEC Struggles with Rising Short Positions
Ardi, a crypto analyst, highlighted that ZEC has been unable to break free of the $420 resistance level. It has now been testing local support at $395. Bulls have succeeded in resisting beyond the $370 mark, absorbing the selling pressure. Nevertheless, the volume is flattening, with a diminishing buying interest as the price increases.
With the rise in price of the token, short positions are rising. Increasing numbers of traders are betting against the rally’s continuation. This can be seen through the increasing short positions and negative Long & Short Delta, which is at -14M.
Source: X
Also Read: Zcash (ZEC) Sweeps $380 Level After Sharp 20% Daily Sell-Off
To stay bullish, cryptocurrency must stay in the $390-400 range. Whereas it would not be able to sustain this range, it would drive the price to the bottom range, initiating long positions liquidations. The market mood is still not entirely positive, and a strong impulse above $420 would make bulls neutral.
Open Interest Up Slightly, But Market Sentiment Shows Caution
Moreover, another analyst, GainMuse, mentioned that there were positive signs of stabilization around a key demand area. Provided that the momentum continues to gain, the token may drive towards the region of the descending resistance. It will, however, depend on whether the market continues receiving support in the coming days.
Source: X
According to CoinGlass data, the trading volume has gone down by 36.82% and currently stands at $2.02 billion. The Open Interest has risen 0.18% and is at $863.11 million. The token OI-Weighted Funding Rate is low at 0.0074%. These signals demonstrate the hesitant mood of the market.
Source: CoinGlass
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