Zcash whale Garrett Bullish renewed his bearish stance on ZEC after opening a new 2x leveraged short worth $4.92 million at $417.80.
The move followed two successful trades that had already generated $11.66 million in realized gains, cementing its reputation for accurately timing previous corrections.
Are last position arrived while also holding 1,268 BTC worth $76.45 million long, although that trade remained underwater by about $20.90 million.
Such high-profile positioning often sets market sentiment, as many participants closely monitor his trades before adjusting their exposure.
Buyers continued to absorb ZEC market orders
Despite Garrett Bullish’s renewed bearish conviction, derivatives data painted a different picture. The 90-day futures taker CVD remained copper dominant, showing that aggressive market participants continued to close offers rather than bids.
This imbalance suggested that buyers had absorbed available liquidity more aggressively than sellers in the recent period. Although ZEC struggled to reach higher price levels, buyer activity indicated that demand had not disappeared.
However, continued buying pressure alone has not translated into a decisive trend reversal as broader sentiment remained cautious following the recent decline.
If buyers keep a lid on market orders as new selling pressure subsides, the market could gradually challenge the bearish positioning. Otherwise, continued whale conviction could continue to limit the upside despite boosting order flow.
Can Oversold Signals Cause a Rebound?
Zcash [ZEC] continued trading below the broken ascending channel after failing to regain the former support structure.
The collapse shifted the market structure in favor of the sellers, leaving $520 as the nearest major resistance, while $335.50 remained the next major support.
However, the downward pressure seemed to ease as the price stabilized around $413 instead of heading lower. Meanwhile, the Stochastic RSI fell to 4.03 and 6.45, pushing both lines deep into oversold territory.
These measurements reflected depleted sales conditions rather than renewed strength.
Unlike the oscillator, the Parabolic SAR remained below priceeThis indicates that the broader trend is still in favor of buyers despite the recent pullback.
A recovery above the broken channel would strengthen bullish conviction, while another rejection could expose ZEC to a retest of lower support.
In short, Garrett Bullish’s latest multi-million dollar short position has reinforced bearish sentiment, but derivatives data has not fully supported this view.
If ZEC reclaims the broken channel and breaks above $520, the bearish thesis could weaken significantly. Otherwise, failure to overcome resistance would likely leave $335.50 as the next downside target.
Final summary
- Garrett Bullish increased bearish exposure, but futures buyers continued to absorb the selling pressure in the market.
- The daily chart reflects cautious optimism, although ZEC is still trading below key resistance levels.