Recent market activity was sparked by a whale trader who opened a long leveraged position of 17,137 ZEC, worth $9.57M. The trader set aggressive targets for take-profits between $545 to $740 while keeping a level of liquidation near $537.56.
It was a resounding success. ZEC After weeks of steady recovery, the market is trading near an important resistance cluster. Volatility is often increased by large leveraged trades close to resistance because the price changes quickly impact liquidation pressure.
This whale, however, continued to aim for significantly higher levels despite recent rejections below $700. It was suggested by the position that smart money could still expect further upsides if ZEC were to reclaim its overhead resistance.
The trader also projected a $7.6M target profit, which reinforced the expectation that his bullish confidence was strong. It is noteworthy that this has happened despite recent market cooling.
The exchange outflows continue to decrease supply
The Spot Netflows remain negative, as ZEC worth another $1.30M left the exchanges in the last session. The main reason for persistent outflows is that traders are not preparing sales immediately, but instead remove the stock from their trading platforms.
Inflows peaked at over $60M in previous rallies. However, recent exchange activity has shifted to consistent outflows.
The transition showed that the holders were beginning to tighten up on supply despite increased volatility at resistance.
In addition, negative netflows that persist often strengthen bullish structures as fewer coins are available for selling at the spot. As a result, exchange outflows also closely matched the leveraged positioning of the whale, confirming the idea that large participants preferred continuation to distribution.
The supply dynamic is still favorable for another attempt to break out above the nearby resistance zones, despite the short-term increase in volatility.
Can ZEC support $542?
ZEC has consolidated over the $542 support after rejecting earlier in the month near the $700 resistance region. The fact is that tThe daily chart revealed that buyers were defending the upper range, despite recent retreats from local tops.
Price continued to remain above the $400 major breakout zone. This maintained the larger bullish structure that was established during the rally in April.
The candles began to compress below the resistance level, which indicated that aggressive trading had been reduced near the top. In recent sessions, there was also a strong pressure on overhead sales.
The bulls were still in control of the structure, as the price was not below the $542 support band.
If ZEC continues to consolidate, then buyers can attempt another push toward the $700-resistance.
After ZEC’s steep vertical rise earlier in the month, MACD showed that acceleration bullish had begun to cool down. Although the histogram bars have weakened significantly since peaking in the breakout phase, the MACD line remains above the Signal line.
The bears are crowded in the direction of the trend
Binance’s top traders have a skewed position towards shorts in spite of ZEC’s wider recovery structure. The fact is that the broader recovery structure of ZEC has not changed.According to Ata, 67.37% (or top-performing trader) of the accounts were in short position while only 32.63% held long positions.
This is also reflected in the long/short rate, which has fallen to 0.48.
The high level of short positions has created violent squeezes, as traders are forced to quickly close their losing positions when prices rise. ZEC has continued to maintain its position above important supports despite weakening indicators.
The crowded position of the bears often amplified upward volatility when buyers recovered resistance zones.
While bears had expected a rejection below $700, sustained resistance above $542 may pressure short-sellers if aggressive bullish activity returns across derivatives markets.
ZEC structure favors a bullish future because price is still holding its key support, while exchange supply has tightened.
Although indicators cooled down after the rally, crowded short positioning could still fuel another breakout attempt towards the $700–$740 region. This is especially true if buyers recover their strength.
Final Summary
- ZEC’s bullish structure has continued to be supported by exchange outflows and whale positions.
- Squeeze risks would be increased if ZEC were to reclaim the $700 resistance zone.
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Source: ambcrypto.com
