Zcash Reclaims Momentum — Short Sellers Now Risk Losing $30 Million
Zcash is exhibiting renewed energy after a pointy bounce within the final 24 hours, signaling the potential repeat of a well-known sample from latest market historical past.
The privacy-focused altcoin has begun reversing its earlier losses, and if momentum continues constructing, the restoration may come at a big price to quick merchants positioned towards the rally.
Zcash Has Its Holders’ Support
Zcash’s latest motion is intently tied to shifts in investor sentiment mirrored by the Chaikin Money Flow (CMF) indicator. The CMF is at present dipping however stays above the zero line, which historically indicators that inflows nonetheless outweigh outflows. Although a downward tilt typically implies weakening shopping for stress, ZEC’s historical behavior suggests in any other case.
Each time the CMF hovered simply above zero, Zcash famous a fast resurgence in inflows, triggering worth rebounds even earlier than the indicator turned firmly bullish. This positioning suggests optimism stays alive regardless of the dip.
Want extra token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The broader macro momentum surrounding Zcash adds further intrigue. A liquidation map evaluation reveals a big menace to quick merchants if ZEC extends its climb. Technical cues level towards an impending rise, and the following main resistance sits close to $600. A transfer to this stage would set off an estimated $30.8 million in liquidations for brief positions.
This potential wipeout creates an extra layer of stress on bearish merchants, who might step again briefly to keep away from heightened danger. Historically, large-scale quick liquidations typically amplify upside momentum, accelerating worth rallies and strengthening short-term bullish sentiment.
ZEC Price May Be Able To Bounce
Zcash is up 12.6% during the last 24 hours, hinting at early restoration indicators. Despite this bounce, ZEC has yet to reclaim the practically 60% beneficial properties it logged at first of the month. Still, the indications talked about above paint a bullish image that implies extra upside could also be inside attain.
If ZEC can break above $521 and push via the $600 barrier, a path towards $700 may open. This transfer would pressure widespread quick liquidations and reinforce the bullish reversal, serving to ZEC regain misplaced floor extra shortly.
However, failure to breach $521 might weaken the restoration outlook. In that case, Zcash could retrace towards $441 and even fall beneath $400. This would invalidate the bullish thesis and place the altcoin again right into a broader corrective development.
The publish Zcash Reclaims Momentum — Short Sellers Now Risk Losing $30 Million appeared first on BeInCrypto.
