Zcash Drops 17% After 4-Year High, Shorts Pile In—Squeeze Setup?
Zcash (ZEC) hit a four-year high simply two days in the past, strongly braving the broader crypto market crash that pulled most cash down. However, issues haven’t been the identical since. Over the previous 24 hours, the ZEC worth has dropped greater than 17%, trimming a part of its large rally.
Even with that dip, the coin nonetheless trades 54% increased week-on-week, exhibiting there’s loads of motion left. But a key metric has now dropped to zero, making some merchants marvel if the rally is already over. That might not be the case. Technicals counsel this might simply be a cooling section — one which may arrange one other breakout quickly.
Social Buzz Fades, however the Flag Pattern Holds Firm
Social dominance, which tracks how a lot Zcash is mentioned in crypto conversations, fell sharply after peaking on October 10, the identical day costs topped out close to $249.
As on-line chatter pale, the ZEC worth additionally slipped — however that doesn’t essentially spell the tip of the transfer.
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ZEC’s current structure mirrors what occurred in early October, when a bull flag sample appeared earlier than a breakout. The social dominance metric dropped sharply throughout that formation as properly. Also, the social metric dropping to zero isn’t unusual for Zcash. Similar ranges had been examined throughout early October, a timeframe that aligned with rising costs.
An identical flag is forming once more, suggesting that this correction (parallel social metric dip) might merely be a reset inside an ongoing bullish setup. Adding to that setup, derivatives knowledge present a possible contrarian catalyst rising.
Short Bets Build Up — and a ZEC Price Breakout Above $255 Could Change Things
According to Binance’s 30-day liquidation map, the ZEC/USDT pair exhibits a heavy brief bias. More than $16.4 million briefly leverage has been constructed beneath present ranges, in comparison with $5.2 million in lengthy positions.
This means most merchants are betting in opposition to Zcash — and when brief curiosity will get crowded, even a small worth rise can set off brief liquidations, forcing costs even increased. An occasion generally termed “brief squeeze.”
On the charts, the ZEC price trades round $223, consolidating inside a flag sample.
A 12-hour candle shut above $255 might verify a brand new breakout, focusing on Fibonacci extension ranges at $335, $466, and $596, with an prolonged projection close to $615 (the projected goal if the continuing flag and pole breakout holds).
However, a fall beneath $190 might gradual momentum, whereas shedding $156 would invalidate the bullish construction fully.
With social chatter quiet, derivatives leaning brief, and the sample nonetheless intact, the Zcash (ZEC) worth could also be organising for an additional shock upside transfer.
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