Zcash price has regained momentum, climbing 4% in the past 24 hours as renewed buying activity pushed ZEC above the $1,000 mark. The most recent rise has created significant pressure on a short position opened at $444, facing massive losses.
ZEC is trading around $1,007.85, with daily trading volume at $5.20 billion and market capitalization of about $16.99 billion. The cryptocurrency touched $1,025, representing yet another strong upside move and showing that ZEC continues experiencing sharp price movements.
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According to information provided by crypto market analyst Crypto Patel, a 32,760 ZEC short position, which was opened at $444, currently has unrealized losses of about $17.77 million. At the recent peak of ZEC near $1,025, the total losses of this position stood at approximately $19.03 million.
In addition to this, the same account holds a 1,330 BTC long position valued at around $105.77 million. Opened at $77,089, the Bitcoin position currently has unrealized profits of about $3.09 million. Thus, the net unrealized losses of this account are at about $14.68 million.
Zcash Price Faces Key Resistance Near $1,025
Despite the recent gains, technical indicators suggest ZEC could face selling pressure after its strong advance. An important resistance is formed by the $882 region, while the upper daily Bollinger Band represents another technical resistance.
Previously, ZEC entered a strong bull leg before reversing right near the resistance zone. Bearish divergence in the daily RSI indicator suggests weak technical conditions despite the rising price.
If selling pressure increases, technical analysis points to $750 as the next major support area. This level also aligns with the broken weekly rising channel that began forming in February, making it an important zone to watch if the current rally loses strength.
What Comes Next for ZEC?
The $1,000 range is now a critical psychological zone for Zcash. Retention above it will help maintain the recovery in progress and provide more chances for the buyers to attempt breaking above the previous high of $1,025. A break above this price point can help ease the bearish bias and facilitate further gains.
A failure to retain current levels can bring ZEC down to $882, followed by a further drop to the support region at $750. This is where the big short position becomes relevant, highlighting the dangers of such a rapid change in price in terms of a highly leveraged asset.
For now, market participants will closely watch the $1,025 resistance and $882 support levels as Zcash attempts to establish its next major direction.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
