After being rejected at $475 three days ago, Zcash [ZEC] has closed at lower lows. In doing so, the altcoin slipped below $450, touching a low of $441.
At press time, ZEC was trading at $437 after falling 1.74% on the daily charts. Amid this market pullback, whales are turning bearish.
Garret Jin increases Zcash short position to $14M
As ZEC continued to decline, traders jumped into the market and aggressively opened short positions.
Looking at the Long Short Ratio, this metric has averaged 0.6 on Binance and OKX. The overall ratio, according to Coinalyze data, dropped to 0.83 as of writing.
As a result, 54% of the opened positions accounted for shorts while 45% accounted for longs. Moreover, a ratio below 1 suggests that most traders opened short positions.
According to Onchain Lens, Garret Jin, a renowned crypto trader, has doubled his ZEC short position to 32,759.57 ZEC valued at $14.9 million.
Despite the ongoing price decline, Garret Jin’s position is still down $42k, having spent $17k in funding. Jin’s decision to increase his short position reflects his bearishness and anticipation of further losses on ZEC price charts.
Surprisingly, while Jin reinforced his position, it seems other market participants are aggressively closing their positions. According to CoinGlass data, Zcash saw $727 million in Futures Outflows compared to $721 million in Inflows over the last three days.
Over the past 24 hours, outflows surged to $297 million while Futures Inflows dropped to $292 million. Outflows outpacing inflows suggest that most traders closed their positions, likely fearing further losses as the market dropped.
What’s next for ZEC?
With Zcash Futures recording significant capital outflows and traders flipping bearish and opening short positions, momentum weakened.
A look at the altcoin’s Relative Strength Index (RSI), for instance, showed the indicator dropped from 54 into the bearish zone to 49 as of writing. This suggests that sellers managed to retake control of the market. At the same time, the MACD remained negative, confirming that sellers have significant control over the market.
These two momentum indicators reflect a weak market structure, suggesting the drop could continue. If the downtrend persists, Zcash could drop to $410, with $386 as the most bearish case.
However, if the retracement proves short-lived and triggers a long liquidation, the altcoin could reclaim $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 dropped 1.7%, falling below $450 to a low of $437 as futures flipped bearish.
