Since recovering from the $197 support zone, Zcash has remained stuck in a tight range. The altcoin is trading between $200 and $230, reflecting a market still looking for direction.
This consolidation continued on the daily chart as the price briefly climbed to a local high near $229 before retreating.
At press time, Zcash (ZEC) was trading at $226, up 9.26% in the last 24 hours. During this move, ZEC reversed its short-term exponential moving average (EMA20), indicating improving bullish momentum.
Zcash relies on speculative demand
Despite the range-bound structure, derivatives traders displayed increasing bullish positioning.
On March 15, Zcash saw $160.8 million in futures inflows, up from $144.4 million in a 12-hour period.
As a result, net futures flows jumped 544% to $16.5 million during the same period.
On top of that, 24-hour net flows climbed 14% to $12 million, highlighting continued participation in derivatives. Such inflows suggest that traders were actively opening positions as market participants prepared for volatility.
This activity also appeared in Open Interest, which rose 10.49% to $371 million.
Rising open interest alongside capital inflows generally indicates stronger demand for futures positions.
Meanwhile, the Long/Short ratio has climbed to 1.23. Long positions accounted for 55.4% while short positions held 44.8%. A ratio above 1 suggests that most traders are anticipating further upside.
Momentum indicators are bullish
With the influx of capital into the derivatives market, ZEC showed strengthened bullish momentum. Looking at the Relative Strength Index (RSI), the indicator rose from 42 to 47, indicating increasing buying pressure.
However, buyers are yet to take control of the market as the RSI still remains below 50. Likewise, ZEC toppled the EMA20 at $224, further validating this bullish momentum.
These indicators being bullish, they signal a potential continuation of the trend if it continues. So, if demand holds and the RSI forms a bullish crossover, ZEC will reverse $230 and target resistance at $250.
However, if demand only turns into short-term speculation, ZEC will fall as low as $205.
Whales pull back the market
While other market participants have shown determination to bring ZEC out of the woods, whales continue to push the market back.
Average spot order size data showed that whales had cumulative orders below $220. The increase in large orders between $197 and $212 was associated with higher whale participation at all of these levels.
However, these whales mostly sold orders. Looking at Spot Taker CVD, sellers have dominated the market over the past 30 days.
Every time Zcash tried to break through, whales would step in and cash out, further straining the market. The continuation of these whale behaviors presents significant downward pressure and could lead to prolonged weakness in the ZEC.
Therefore, for a sustainable bullish move, ZEC needs a change in whale sentiments. By then, Zcash will likely experience further weakness, with a high probability of sideways movement.
Final summary
- Zcash (ZEC) traded in a tight $200-$230 range after rebounding from the $197 support zone.
- Derivatives activity surged, with net futures flows jumping 544% to $16.5 million as traders opened new positions.
