ZCash [ZEC] has long led the privacy sector in social trends and capital inflows. Over the past 24 hours, ZEC rallied over 11%, outpacing Bitcoin [BTC] and the broader crypto market.
Moreover, the daily trading volume was up 43%, surpassing $647 million. This indicated a spike in speculative trading, but it was not the volume that led to the technical breakout on the charts. But short liquidations did.
Impact of massive short liquidations on ZEC
The daily surge has mainly come from short liquidations, which totaled $12.75 million. On the other hand, long liquidations reached almost $500K. This meant that short liquidations were 26 times bigger than longs.
The volumes showed the derivative market mainly drove the price rather than the spot market. Zcash futures trading exceeded $2.437 billion, dwarfing the volume of Spot traders at $255 million.
The largest Spot volume was on Binance and Coinbase, respectively.
Spot sellers were not spared either. As per Onchain Lens, a whale on Hyperliquid was fully liquidated for more than $1.81 million in a ZEC short order, losing about $130.5K.
Looking at the bigger picture, the OI-Weighted Funding Rate turned green from being red two days ago, as per CoinGlass. The indicator reading was 0.0086%, showing that bulls were paying a premium to bears to keep their positions open.
As such, the result was ZEC price breaking out of a key technical chart pattern.
Is $626 next for ZEC bulls?
Zcash’s price broke above the horizontal resistance of an ascending triangle at $538. Prior to this breakout, ZEC had been respecting a trendline support since late June.
Looking ahead, bulls appear to be headed toward $626 or higher, but only if ZEC stays above $538. That would be more likely if the altcoin successfully retests the breakout zone.
Gauging this possibility, momentum and capital flow indicators appear to align with this projection.
That is, the Chaikin Money Flow (CMF) has risen above the neutral level with a reading of 0.02, indicating capital flows are mildly positive. Moreover, the MACD was green, indicating that momentum favored the bulls.
Therefore, if ZEC drops and stays below $538, the projection becomes unlikely. However, for a complete invalidation, the price should break below the slanting support level.
What is standing between this projection is the fact that the Long/Short Ratio is leaning toward selling for both retail and top traders. As per CoinGlass, top traders have a ratio of 0.46, slightly lower than that of retail at 0.51.
Final Summary
- ZCash rallies 11% in 24 hours amid a spike in short liquidations and funding rates turning green.
- ZEC bulls aim to hit $626 or higher but only if they can keep the altcoin above $538.
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