ZCash (ZEC) has long led the privacy industry in social trends and capital inflows. Over the past 24 hours, ZEC has surged over 11%, outpacing Bitcoin (BTC) and the broader crypto market.
Additionally, daily transaction volume increased by 43%, exceeding $647 million. This indicated an increase in speculative trading, but it was not the volume that led to the technical breakout on the charts. However, there were short liquidations.
Impact of large short liquidations on ZEC
The daily increase was largely driven by short liquidations, which totaled $12.75 million. On the other hand, long liquidations reached almost 500 thousand dollars. This meant that short liquidations were 26 times larger than long liquidations.
Volumes showed that the price was mainly influenced by the derivatives market rather than the spot market. Zcash futures trading exceeded $2.437 billion, eclipsing the $255 million in volume from Spot traders.
The largest Spot volume occurred on Binance and Coinbase respectively.
Spot sellers could not escape this situation either. According to Onchain Lens, a whale in Hyperliquid was completely liquidated for more than $1.81 million. ZEC The short order resulted in a loss of approximately $130.5K.
Looking at the bigger picture, the OI Weighted Funding Rate has turned green from red two days ago, according to CoinGlass. The indicator reading was 0.0086%, indicating that the bulls are paying a premium to the bears to keep their positions open.
As a result, ZEC price broke out of an important technical chart pattern.
Is $626 next for ZEC bulls?
The price of Zcash broke above $538, which is the horizontal resistance of the ascending triangle. Prior to this breakout, ZEC had been respecting trendline support since late June.
Looking ahead, the bulls seem to be heading towards $626 or higher, but only if ZEC remains above $538. This will be more likely if the altcoin successfully retests the breakout zone.
Momentum and capital flow indicators that measure this probability appear to be consistent with this projection.
So, Chaikin Money Flow (CMF) has moved above the neutral level with a reading of 0.02, indicating that capital flows are slightly positive. Moreover, the MACD being green shows that the momentum is in favor of the bulls.
Therefore, the projection will be unlikely if ZEC falls and remains below $538. However, for it to be completely invalidated, the price must break below the oblique support level.
What stands in the way of this prediction is that the Long/Short Ratio is trending towards selling for both retail and high-end investors. According to CoinGlass, top traders have a ratio of 0.46, which is slightly lower than retail’s 0.51.
Final Summary
- ZCash rose 11% in 24 hours, driven by an increase in short liquidations and funding rates turning green.
- ZEC bulls are aiming to reach $626 or higher but only if they can keep the altcoin above $538.
