Zcash [ZEC] has struggled to hold $400 over the past week, fluctuating between $360 and $415. In fact, at press time, Zcash traded at $399 after rising slightly by 0.3% on the daily charts.
Prior to these slight gains, the altcoin had been on a downward trajectory, dropping 3.89% on the weekly charts.
Zcash whale opens an $8.1 million worth of long position
Despite the extended market weakness, it seems traders are convinced ZEC will hold $400 and continue to gain.
In fact, over the past three days, the Futures market has seen renewed whale activity. The Futures Average Order Size data from CryptoQuant showed big whale orders for three consecutive days.
Zcash whales had taken a break from the market, with the metric showing no whale orders throughout June. But now whales have returned and are speculating again.
Even more so, these whales seem to have flipped and begun opening long positions; according to Onchain Lens, a whale deposited $10.12 million into HyperLiquid and opened a long position.
The whale opened a 2x long position on 20,338 worth $8.1 million. So far, the whale is already down $135k, as ZEC traded below $400.
Still, the whale holds $4 million in USDC and is likely to increase its long position.
Interestingly, it seems this whale was not the only trader who turned optimistic. According to CoinGlass data, the altcoin’s Long/Short Ratio jumped to 1.05 at press time.
A ratio above 1 suggested that traders mostly opened long positions. Demand for longs further reflected growing optimism, with traders actively anticipating gains for ZEC.
Is demand adequate to hold ZEC’s key level?
Although Zcash is experiencing new speculative demand, especially from whales, the market structure remains bearish.
For starters, the altcoin currently sits 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 sits at 0%.
When these momentum indicators are set in this manner, it suggests that downside momentum is strong and likely to continue.
Therefore, if the attempted whale comeback fails to inspire an upside, the altcoin could also drop below the 200-day EMA at $382. In doing so, Zcash will find the next support around $336.
However, if whale capital influx on the derivatives side materializes and triggers some short liquidations. Such a scenario will see the altcoin hold $400 and close above short-term moving averages at $452.
Final Summary
- A Zcash whale deposited $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 whale demand offers hope for another leg up towards $450.