Zcash (ZEC) Price Chart Screams a Bull Trap With 30% Crash Risk
The Zcash (ZEC) worth motion reveals indicators of a bull lure forming after a sharp rebound. The token fell to $120 on October 7 earlier than rallying near $185 inside hours — a almost 55% rise.
It now trades round $171, and whereas many merchants might imagine the correction section is over, on-chain and technical indicators counsel the other.
Big Money Is Exiting While Leverage Builds Up
The Zcash price is exhibiting early indicators of exhaustion as giant cash inflows begin to fade. On-chain readings from the Chaikin Money Flow (CMF), which measures the power of shopping for and promoting strain utilizing each worth and quantity, reveal a regular decline since October 1.
CMF stays above the zero line at press time. This means some inflows persist, however the collection of decrease highs indicators that institutional and whale cash are quietly exiting Zcash positions.
This fading CMF development usually precedes a shift in momentum. It additionally suggests that purchasing demand is slowing at the same time as worth pushes increased. In easy phrases, the rally is being sustained extra by retail enthusiasm than by sturdy capital inflows.
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At the identical time, derivatives information provides to the danger narrative. On the Binance ZEC/USDT perpetual pair, cumulative lengthy liquidations stand at $16.05 million, in comparison with solely $3.65 million in shorts.
This sharp imbalance on one change alone reveals that almost all merchants throughout main exchanges are over-leveraged on the lengthy facet. This, too, leaves Zcash weak to a lengthy squeeze when pressured liquidations cascade as costs drop, accelerating the autumn.
Together, these indicators present that Zcash’s latest price bounce is constructed on a weak footing, with institutional cash exiting and speculative leverage piling up.
Bearish Pattern and Divergence Confirm the Zcash Price Trap
The 12-hour Zcash price chart reinforces the bull lure thesis. The token is buying and selling close to the higher trendline of a rising wedge, a construction that often breaks downward as soon as momentum fades. Between October 2 and October 8, the Zcash worth made increased highs, whereas the Relative Strength Index (RSI), which measures shopping for momentum, made decrease highs.
This bearish divergence signifies that though the Zcash price rose, the power behind these strikes weakened. In different phrases, patrons are shedding conviction whereas sellers are steadily stepping in, a traditional signal of an upcoming correction.
If this sample performs out, a drop under $151 (the 0.236 Fib degree) might affirm the breakdown, probably sending the Zcash worth all the way down to $120 (the 0 Fib degree), a fall of almost 30% from present ranges. In a deeper correction, $97 might function the subsequent historic help. Also, a dip below $74 would result in a wedge breakdown and threat a fall to even $61.
However, a decisive breakout above $222 (the 0.786 Fib extension degree) would invalidate this bearish setup, suggesting that patrons have regained management and negating the bull lure narrative.
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