Zcash [ZEC] has struggled to hold $400 over the past week, fluctuating between $360 and $415. At the time of writing, Zcash was trading as high as $399, after rising slightly by 0.3% on the daily charts.
Prior to this slight increase, the altcoin had been on a downward trend, falling 3.89% on the weekly charts.
Zcash Whale opens a long position worth $8.1 million
Despite the continued market weakness, it appears that traders are confident that ZEC will hold at $400 and continue to rise.
In fact, the Futures market has seen renewed whale activity over the past three days. CryptoQuant’s Futures Average Order Size data showed three consecutive days of large whale orders.
Zcash whales had taken a break from the market, with the metric showing no orders for whales in June. But now the whales have returned and are speculating again.
In fact, these whales appear to do just that have turned around and started opening long positions; according to Onchain lensa whale poured $10.12 million into HyperLiquid and opened a long position.
The whale opened a 2x long position at 20,338 worth $8.1 million. Year to date, the whale is already down $135,000, while ZEC is trading below $400.
Still, the whale holds $4 million in USDC and is likely to increase his long position.
Interestingly, it seems that this whale wasn’t the only trader who became optimistic. According to CoinGlass data, the altcoin’s Long/Short Ratio has increased to 1.05 at the time of writing.
A ratio above 1 suggested that traders were mainly opening long positions. Demand for long positions further reflected growing optimism, with traders actively anticipating gains for ZEC.
Is the demand sufficient to maintain ZEC’s key level?
Although Zcash is experiencing new speculative demand, especially from whales, the market structure remains bearish.
For starters, the altcoin is currently below the 20, 50, and 100 day moving averages, indicating a weaker trend. At the same time, the altcoin’s Aroon Down Line remained elevated at 78%, while the Aroon Up Line stood at 0%.
When these momentum indicators are identified in this way, it indicates that downward momentum is strong and likely to continue.
Therefore, if the whales’ attempted comeback fails to create an advantage, the altcoin could also fall below the 200-day EMA at $382. By doing this, Zcash will find the next support around $336.
However, if the influx of whale capital on the derivatives side materializes and triggers some short liquidations. In such a scenario, the altcoin will hold $400 and close above the short-term moving averages at $452.
Final summary
- A Zcash Whale poured $10 million into Hyperliquid and opened a 2x long position on 20,338 worth $8.1 million
- ZEC continues to hover around $400, but renewed speculative demand for whales offers hope for a new move towards $450.
Credit : ambcrypto.com
