Zcash's recent rebound failed to hold, with prices weakening again after hitting $543 and repeatedly hitting new lows. At the time of writing, ZEC was trading at $447, down approximately 2.4% for the day, having briefly dipped to $440 during the session.
Long liquidation continues to expand
With prices falling below $450, leveraged long positions faced significantly increased pressure. Data cited in the article indicates that over $17 million in ZEC long positions were liquidated in the past three days, with over $6.5 million liquidated in the past 24 hours alone.
Increased liquidation typically means the forced exit of highly leveraged positions, which also amplifies short-term volatility. The current forced liquidation of such positions further exacerbates downward pressure on the market.
Whale closes long positions and exits the market.
On-chain monitoring account Lookonchain reported that trader Garret Jin closed his ZEC long positions, making a profit of approximately $417,000. The report also stated that the trader had profited $11.4 million a week earlier through ZEC short positions.
This move was interpreted by the market as a sign of caution regarding future price movements. The article argues that, given the continued weakening of prices and rising liquidations, some large traders are more inclined to lock in profits rather than continue holding long positions.
Short positions rise to majority
Coinalyze data shows that Zcash's long/short ratio has dropped to 0.86, with shorts accounting for approximately 53.6% and longs for approximately 46%. This means that in the current derivatives market, short positions now exceed long positions.
From a technical perspective, the article mentions that ZEC's RSI has fallen back to 45, indicating increased selling pressure; in the Aroon indicator, Aroon Down rose to 71 while Aroon Up fell to 0, also reflecting that the downward trend still dominates.
If this trend continues, market attention will remain focused on the support level around $400. Meanwhile, increased short positions also mean that price volatility could amplify further should buying activity suddenly pick up.
