Major whale shorts $4.92M in ZEC – Can Zcash rebound to $520?

Zcash whale Garrett Bullish renewed his bearish stance on ZEC after opening a fresh 2x leveraged short worth $4.92 million at $417.80. 

The move followed two successful trades that had already generated $11.66 million in realized profits, reinforcing his reputation for accurately timing previous corrections. 

His latest position arrived while he also maintained a 1,268 BTC long worth $76.45 million, although that trade remained roughly $20.90 million underwater. 

Such high-profile positioning often shapes market sentiment because many participants closely track his trades before adjusting their exposure. 

Buyers kept absorbing ZEC market orders

Despite Garrett Bullish’s renewed bearish conviction, derivatives data painted a different picture. The 90-day Futures Taker CVD remained buyer-dominant, showing that aggressive market participants had continued lifting offers instead of hitting bids. 

This imbalance suggested buyers had absorbed available liquidity more aggressively than sellers throughout the recent period. Even though ZEC struggled to regain higher price levels, taker activity indicated demand had not disappeared. 

However, sustained buying pressure alone had not translated into a decisive trend reversal because broader sentiment remained cautious after the recent decline. 

If buyers maintain control of market orders while fresh selling pressure fades, the market could gradually challenge bearish positioning. Otherwise, persistent whale conviction could continue limiting upside despite encouraging order flow.

Can oversold signals trigger a rebound?

Zcash [ZEC] continued trading below its broken ascending channel after failing to reclaim the former support structure. 

The breakdown shifted market structure in favor of sellers, leaving $520 as the nearest major resistance while $335.50 remained the next significant support. 

However, downside pressure appeared to slow as price stabilized near $413 instead of extending lower. Meanwhile, the Stochastic RSI dropped to 4.03 and 6.45, placing both lines deep inside oversold territory. 

Those readings reflected exhausted selling conditions rather than renewed strength. 

Unlike the oscillator, the Parabolic SAR remained below the price, indicating that the broader trend still favored buyers despite the recent pullback.

A recovery above the broken channel would strengthen bullish conviction, whereas another rejection could expose ZEC to a retest of lower support.

Conclusively, Garrett Bullish’s latest multi-million-dollar short has reinforced bearish sentiment, but derivatives data has not fully supported that view. 

If ZEC reclaims the broken channel and pushes above $520, the bearish thesis could weaken considerably. Otherwise, failure to overcome resistance would likely keep $335.50 as the next downside target.

Final Summary

• Garrett Bullish increased bearish exposure, yet futures buyers continued absorbing market selling pressure.
• The daily chart reflects cautious optimism, though ZEC still trades below important resistance levels.