Zcash whale bleeds $3.8 mln – But ZEC bulls still charge toward $600
A wallet linked to karna0x fully closed its $9.8 million ZEC short position, incurring $3.8 million in losses.
Zcash [ZEC] has shown relative upside strength over the past three days, closing at higher highs. The altcoin breached the $500 resistance and touched a local high of $545 before slightly retracing.
As of this writing, Zcash traded at $525, up 5.94% on the daily charts, signaling dominant upside volatility. With Zcash trading above $500, short-position holders are incurring massive losses.
Zcash whale takes a $3.8 million loss
As the market’s upside momentum continued, bears were forcefully flushed out, while others closed positions to avoid further losses. According to Onchain Lens, a wallet linked to karna0x fully closed its $9.8 million ZEC short position.
In the process, the whale incurred a loss of over $3.8 million. The decision to close indicated the whale saw the risk of liquidation as the market continued to pump.
In fact, Zcash short-position holders have seen massive liquidations. CoinGlass data showed that over $11 million in short positions were liquidated, while only $2.2 million in longs were liquidated.
Historically, a short squeeze has always inspired an uptrend. As traders continue to fund their positions to avoid liquidations, demand for the asset recovers. As a result, momentum strengthens, further flashing out more bears and leading to a strong market reaction.
Ideally, the prevailing market conditions position Zcash towards such an outcome.
On top of that, threatened by rising short liquidations, other traders flipped to longs. In fact, the altcoin’s Long/Short Ratio jumped to 1.095 at press time.
The ratio’s reclamation of 1 suggests that most traders turned bullish and have been anticipated more gains.
Can ZEC bulls hold on?
Zcash has recovered significantly since crashing from $630 to $251. Amid this market recovery, upside momentum has strengthened significantly, with bulls retaking control.
As a result, the altcoin’s upside momentum has strengthened significantly, as evidenced by the DMI and ADX smoothing indicators.
ZEC is currently experiencing a modest bullish bias with a developing trend. Currently, bulls have a slight edge as +DI sits above -DI while ADXR sits above ADX.
Although the gap is narrow, it shows a strengthening trend in its continuation potential. Thus, if the conditions persist, Zcash could flip $550 and target $600 resistance.
However, sellers remain active, as -DI sits at 24 and +DI at 25, suggesting a narrow gap. If profit-taking increases at current levels, ZEC could fall below $500 again.
Final Summary
- A wallet linked to karna0x fully closed its $9.8 million ZEC short position, taking a $3.8 million loss.
- Zcash is exhibiting strong upside momentum, with bears retaking the market as they eye a move towards $600.
