The buying pressure for Zcash has remained stable even during the widespread panic in the market. Both institutional and retail activity have remained strong, two segments that typically move in opposite directions during downturns.
The Money Flow Index (MFI), which tracks buying strength and trading volume, is above 95, demonstrating that traders continue to actively buy at higher prices.
Meanwhile, the Chaikin Money Flow (CMF), which reflects greater or institutional activity, remains positive around 0.25, confirming that large players have not withdrawn.
Together, these trends explain why the price of ZEC rebounded so sharply after briefly falling to $150 on October 10 (threatened by the drop).
Buyers quickly absorbed the dip, causing the price of ZEC to return to nearly $290. This constant inflow of money, from both retail and whales, has kept the bullish trend of Zcash intact even as most of the market turned negative.
However, CMF has not yet recovered its early October high. This means that while buying is strong, large-scale institutional momentum has not fully returned. If large amounts of money start flowing back in, the price rally of Zcash could easily extend even further.
The only significant risk to the price of Zcash currently lies in the derivatives market. ZEC/USDT liquidation map data shows that the market is heavily skewed towards long positions: $21.49 million in leveraged long positions versus only $3.43 million in short positions.
This means that most traders are betting that the price of ZEC will continue to rise. But if the price suddenly falls towards $178, all those leveraged long positions could start to get liquidated, triggering a chain reaction of forced selling, similar to what triggered the recent widespread crash.
So, while spot buying remains strong, leveraged traders may be creating a pressure point that could generate short-term volatility if sentiment changes.
The daily chart of Zcash shows that the rally remains technically strong. The token continues to operate within an ascending triangle, with Fibonacci levels providing a solid structure. As of this writing, ZEC is around $257, with immediate support near $251.
If the price manages to hold at that level, and if buying pressure continues from both retail and whales, ZEC could advance towards $331, the next resistance to overcome. A daily close above this figure would likely open the door to $461, continuing its strong bullish trend.
But if leveraged positions begin to unwind, the initial retracement zones are around $223 and $170. These would be key areas for buyers on dips to re-enter if the rally cools off.
