Zcash (ZEC) Price Targets $594 Next Amid Pullback Risks — Will Bulls Finally Yield?
Zcash (ZEC) continues to outperform a weak crypto market, rising over 17% prior to now 24 hours and about 178% over the previous month. While most altcoins are beneath strain, the ZEC worth has stored climbing after confirming a flag breakout on October 24. Since then, it has hit every goal one after the other, lately breaking above $438. The subsequent massive goal now lies at $594, with an prolonged projection aimed larger.
Still, after such a pointy rise, indicators are constructing that bulls could quickly face their first actual take a look at.
Derivatives Data Shows Rising Risk of Long Liquidations
Open curiosity in Zcash futures — the overall quantity of open by-product contracts — has surged to a six-month high of $337 million, matching final October’s peak. This reveals aggressive leverage constructing throughout exchanges, with merchants principally betting lengthy.
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On Binance alone, lengthy liquidations now whole $30.27 million, practically thrice greater than shorts at $12.43 million. That means most brief positions have already been cleared out, leaving the market closely tilted towards longs.
Such imbalances could make the rally fragile. Even a small drop can set off lengthy liquidations and cascade right into a Zcash worth pullback. If ZEC slips below $450, a brief correction may begin. A fall beneath $342, which aligns with a key Fibonacci degree (defined later), would set off all of the lengthy liquidations on the 7-day timeframe. That type of lengthy squeeze may lastly harm the ZEC worth.
Bearish Divergence Warns That Bulls Could Finally Pause
Since October 11, ZEC’s price has made larger highs, however the Relative Strength Index (RSI) — which tracks momentum — has been forming decrease highs. This is called a bearish divergence, and it typically alerts that upward momentum is dropping steam.
This divergence has persevered for some time now, whilst costs have continued to climb. RSI would wish to rise above 86 to cancel out this setup, however that degree additionally marks overbought territory, the place rallies typically decelerate as merchants take revenue.
When mixed with ZEC’s overheated by-product positioning, this RSI setup means that the subsequent pullback — even when transient — may lastly make bulls yield, not less than briefly, earlier than the subsequent leg larger.
Money Flow and ZEC Price Action Still Back the Bulls
Despite these dangers, giant spot pockets inflows stay sturdy. Chaikin Money Flow (CMF) — which measures how a lot cash is getting into or leaving the token — stands at 0.13, confirming constructive inflows. A transfer above 0.14 would present rising purchaser dominance, and a break over 0.24 would doubtless mark aggressive whale accumulation.
That sturdy cash circulate continues to assist Zcash’s bullish construction. The flag breakout from October 24 stays lively, with momentum pointing towards $594 as the subsequent main resistance. If consumers defend above $438, the ZEC price could test the $847 extension.
However, a detailed beneath $342 would break the bullish sample and make sure that the long-anticipated pullback has begun. Until then, bulls stay firmly in management — however the strain to carry these positive factors is now larger than ever.
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