Zcash (ZEC) closed lower after being rejected at $475 three days ago. In doing so, the altcoin fell below $450 to $441.
At the time of writing, ZEC was trading at $437 after falling 1.74% on the daily charts. Amidst this downturn in the market, whales are turning bearish.
Garret Jin increased Zcash short position to $14 million
Like ZEC As the decline continued, traders jumped into the market and aggressively opened short positions.
Looking at the Long Short Ratio, this measurement appears to be 0.6 on average on Binance and OKX. According to Coinalyze data, the overall rate dropped to 0.83 as of the time of writing.
As a result, 54% of the positions opened consisted of short positions and 45% consisted of long positions. Moreover, a ratio below 1 indicates that most investors are opening short positions.
Accordingly Lens On ChainGarret Jin, a well-known crypto trader, doubled his ZEC short position to 32,759.57 ZEC, worth $14.9 million.
Despite the continued price decline, Garret Jin’s position is still down $42k and he has spent $17k in funds. Jin’s decision to increase his short position reflects his bearish sentiment and expectation of further losses on the ZEC price charts.
Surprisingly, Jin strengthened his position while other market participants appeared to be aggressively closing their positions. According to CoinGlass data, Zcash saw $721 million in Futures Outflows and $721 million in Inflows in the last three days.
In the last 24 hours, outflows increased to $297 million, while Futures Inflows decreased to $292 million. The fact that outflows outpaced inflows indicates that most traders likely closed their positions out of fear of further losses as the market fell.
What does the future hold for ZEC?
Momentum weakened as Zcash Futures recorded significant capital outflows and investors turned bearish and opened short positions.
For example, looking at the altcoin’s Relative Strength Index (RSI), the indicator dropped from 54 at the time of writing to the bearish zone of 49. This shows that sellers have managed to regain control of the market. At the same time, the MACD remained negative, confirming that sellers had significant control over the market.
These two momentum indicators reflect a weak market structure and indicate that the decline may continue. If the downtrend continues, Zcash may drop to $410, with the most bearish being at $386.
However, if the pullback is short-lived and triggers a prolonged liquidation, the altcoin could regain $450 and target $465 in the short term.
Final Summary
- Garret Jin doubled his ZEC short position to 32,759.57 ZEC, worth approximately $14.9 million.
- Zcash fell 1.7%, falling below $450 to $437 as futures entered a bearish trend.
