After being rejected at $475 three days ago, Zcash (ZEC) closed at a low. In doing so, the altcoin fell below $450, reaching 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 $14 Million
As ZEC continued to decline, traders rushed into the market and aggressively opened short positions.
Looking at the Long Short ratio, this metric averages 0.6 on Binance and OKX. The overall ratio, according to Coinalyze data, has fallen to 0.83 at the time of writing.
As a result, 54% of open positions represented short positions while 45% represented long positions. Additionally, a ratio below 1 suggests that most traders have opened short positions.
According to Onchain Lens, Garret Jin, a renowned crypto trader, doubled his ZEC short position to 32,759.57 ZEC valued at $14.9 million.
Despite the continued price decline, Garret Jin’s position is still down $42,000, after spending $17,000 in funding. Jin’s decision to increase his short position reflects his bearishness and anticipation of further losses on the ZEC price charts.
Surprisingly, while Jin has strengthened his position, it appears that other market participants are closing their positions aggressively. According to CoinGlass data, Zcash saw $727 million in outflows from futures contracts, compared to $721 million in inflows over the past three days.
Over the past 24 hours, outflows jumped to $297 million while futures inflows fell to $292 million. Outflows exceeding entries suggest that most traders closed their positions, likely fearing further losses as the market fell.
What’s next for ZEC?
As Zcash Futures saw large outflows and traders returned to the bears and opened short positions, momentum weakened.
A look at the altcoin’s Relative Strength Index (RSI), for example, showed that the indicator fell from 54 in the bearish zone to 49 at the time of writing. This suggests that sellers have managed to regain 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 weak market structure, suggesting that the decline could continue. If the downtrend persists, Zcash could drop to $410, with $386 being the most bearish case.
However, if the retracement proves to be short-lived and triggers a long sell-off, the altcoin could reclaim $450 and target $465 in the near term.
Final summary
- Garret Jin doubled his short position in ZEC to 32,759.57 ZEC worth approximately $14.9 million.
- Zcash fell 1.7%, falling below $450 to hit a low of $437 as futures turned bearish.
