Zcash whale Garrett Bullish renewed his bearish sentiment on ZEC after opening a new 2x leveraged short position worth $4.92 million at $417.80.
The move follows two successful trades that have already generated $11.66 million in profits, bolstering its reputation for timing previous corrections correctly.
His last location He also came in holding 1,268 BTC worth $76.45 million, but that trade remained underwater at around $20.90 million.
This type of high-profile positioning often shapes market sentiment because many participants monitor their trades closely before adjusting their exposure.
Buyers continued to take ZEC market orders
Despite Garrett Bullish’s renewed bearish sentiment, derivatives data painted a different picture. 90-day Futures Buyer CVD The buyer remained dominant, indicating that aggressive market participants continued to raise bids rather than catch up.
This imbalance indicates that buyers have been absorbing available liquidity more aggressively than sellers recently. Although ZEC struggled to recapture higher price levels, buyer activity showed that demand had not disappeared.
However, continued buying pressure alone did not lead to a definitive reversal of the trend as overall sentiment remained cautious after the recent decline.
If buyers retain control of market orders as new selling pressure subsides, the market may slowly challenge the downtrend. Otherwise, persistent whale sentiment may continue to limit the rise despite encouraging order flow.
Could oversold signals trigger a rally?
Zcash (ZEC) After failing to regain its old support structure, it continued to trade below its broken ascending channel.
This breakout shifted the market structure in favor of sellers, leaving $520 as the nearest major resistance while $335.50 remained as the next major support.
However, the downward pressure slowed down as the price stabilized around $413 instead of falling further. Meanwhile, the Stochastic RSI fell to 4.03 and 6.45, placing both lines in the oversold territory.
These readings reflected depleted selling conditions rather than renewed strength.
Unlike the Oscillator, the Parabolic SAR remains below the pricetoThis shows that despite the recent pullback, the general trend is still in favor of buyers.
A rebound above the broken channel could strengthen the uptrend, while another rejection could expose ZEC to a retest of lower support.
As a result, Garrett Bullish’s latest multi-million dollar short positions strengthened the bearish sentiment, but derivatives data did not fully support this view.
The bearish thesis could weaken significantly if ZEC reclaims the broken channel and rises above $520. Otherwise, failure to overcome the resistance will likely keep $335.50 as the next downside target.
Final Summary
- Garrett Bullish extended the bearish trend, but futures buyers continued to absorb selling pressure in the market.
- The daily chart reflects cautious optimism, but ZEC is still trading below key resistance levels.
