Zcash [ZEC] Over the past 4 days, ZEC traded in a narrow range between 400 and $430. ZEC was trading at $427 as of press time. This is an increase of 2.6% for the day, and 8.0% over the past week.
Although the altcoin focused on privacy recovered from recent vulnerabilities concerns, it struggled to maintain momentum. Some large investors appear to have become more confident.
What made a whale take a position worth $21 million?
You can also read about the advantages of using ZEC Garret Ji increased his bullish position when prices stabilized over $400.
As per Hypurrscan dataJin increased his leveraged 2x long position from 50,100 ZEC to approximately $21,3 million.
The position is already under pressure due to the price volatility. The whale had lost approximately $654,00 and was charged more than $57,000 as funding fees.
This move showed ZEC’s confidence in its ability to break free of the current consolidation range.
Why do most traders continue to bet against ZEC
The market remained cautious despite Jin’s bullish turn.
Even the major exchanges saw their Long/Short Ratio falling below 1. Binance’s and OKX’s readings were around 0.6, while the ratio was near 0.98.
If the ratio is below 1, it usually means that there are more short than long positions. It was clear that traders anticipated another downturn.
The Futures Open Interest also increased, as new capital was brought into the derivatives marketplace.
In the last 8 hours, over $122 million has been invested in futures markets. ZEC had recorded approximately $571 million of outflows in the previous 24 hours.
The shift in the markets implied new positions. The current position implied that a significant portion of this capital was likely used to support shorts.
ZEC will it break over $430 or drop below $400?
ZEC was trapped in a range of consolidation as the bulls and bears fought for control.
In addition, several momentum indicators continue favoring sellers.
As of press time, the Bulls vs Bears index showed a value of -8.04. A negative reading usually indicates that sellers are in control. The SMI Ergodic Indicator also remained under zero, which reinforced the trend of the bears.
These indicators together suggested that downside pressure was still present.
ZEC may revisit the support area of $400 before trying another recovery if it can maintain control.
The volatility is still there, however. ZEC could break through $430 with a wave of liquidations. The next target is near $500 if that happens.
Final Summary
- ZEC fluctuated between $400 and $430 over four days, despite recent concerns about the market.
- The whale increased his leveraged position from $11 to $21 Million, indicating confidence in rising prices.
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Source: ambcrypto.com
