Zcash Reclaims Momentum — Short Sellers Now Risk Losing $30 Million
Zcash, a privacy-focused altcoin, has shown recovery with a 12.6% increase in the last 24 hours, signaling potential further gains. Investor sentiment and technical indicators, such as the Chaikin Money Flow (CMF), suggest continued inflows and a bullish outlook. A liquidation map indicates that if ZEC surpasses $521 and hits $600, an estimated $30.8 million in short positions could be liquidated, potentially accelerating price rallies. However, failure to breach $521 could lead to a retracement below $400, invalidating the bullish scenario.
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Zcash Shows Renewed Strength
Zcash has shown renewed strength after a sharp bounce in the past 24 hours, signaling the potential repeat of a familiar pattern observed in recent market history. The privacy-focused altcoin is reversing earlier losses, and if the upward momentum continues, it may come at a significant cost to short traders positioned against this rally.
Investor Sentiment and Chaikin Money Flow
Zcash's recent movements align closely with investor sentiment, as reflected by the Chaikin Money Flow (CMF) indicator. The CMF is currently dipping but remains above the zero line, indicating that inflows still outweigh outflows. Historically, whenever the CMF hovered near zero, Zcash experienced quick inflows and price rebounds, even before the indicator turned firmly bullish. This consistent behavior suggests optimism remains, despite any temporary dips.
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Macro Momentum and Liquidation Risks for Short Sellers
The broader macro momentum surrounding Zcash adds more intrigue. A liquidation map analysis shows that if ZEC's price continues to climb, short traders could face a significant risk. Technical indicators point to a potential rise with the next major resistance level at $600. Surpassing this could lead to approximately $30.8 million in liquidations for short positions.
Historically, large-scale short liquidations have amplified price rallies, boosting short-term bullish sentiment. This scenario increases pressure on bearish traders, potentially forcing them to step back temporarily to avoid further risks.
ZEC Liquidation Map. Source: TradingView
Zcash Price Movement and Future Outlook
Over the last 24 hours, Zcash has surged 12.6%, hinting at early recovery signals. However, it has not yet reclaimed its earlier 60% gains from the beginning of the month. If ZEC can break above $521 and push through the $600 resistance, the price could target $700, triggering widespread short liquidations and reinforcing bullish momentum.
On the flip side, failure to surpass $521 may weaken its recovery, potentially causing ZEC to fall back to $441 or even below $400. This outcome would invalidate the bullish narrative and place Zcash in a broader corrective trend.
ZEC Price Analysis. Source: TradingView