Today we are going to talk about the latest developments with ZEC; this coin has been quite thrilling lately! The price plummeted from a high of $775 to $360, causing a lot of anxiety, but surprisingly, a major short has turned a floating loss of $21 million into a profit of $2.11 million! Does this indicate that ZEC is about to change direction?
News: Bears turn profitable, market sentiment is quietly changing!
On December 1, the biggest short on Hyperliquid for ZEC finally got out of the position! This guy opened a short position in October at an average price of $419, and during the worst of it, he almost got liquidated with a floating loss of $21 million, but now he has actually turned a floating profit of $2.11 million, and the position size has decreased from $30 million to $23.21 million.
What does this mean? Large funds are starting to close positions and take profits, possibly feeling that ZEC has dropped enough and market expectations are changing. Such news often affects retail investor sentiment; short sellers are making money, does this mean the downward momentum is weakening? We need to pay attention, as this could be a bottom signal, but do not blindly follow the trend; the actions of big players are just a reference, not gospel.
Technical analysis: The K-line chart hides secrets, and a rebound may occur in the oversold zone!
Looking at the 1-hour K-line chart of ZEC again, the current price is $360, the resistance level is at $470, the key level is $300, and the support level is $125. In terms of indicators, the trading volume has increased and fallen, indicating significant selling pressure; MACD has shown a death cross, suggesting a bearish short-term trend; however, RSI has entered the oversold zone, and historically, this position is prone to trigger a technical rebound. Simply put, ZEC now resembles a spring, too tightly compressed may cause it to bounce. However, the trend has not clearly reversed; we cannot impulsively buy the dip just because it is oversold.
My opinion: Opportunities coexist with risks; be cautiously optimistic!
As an old leek, I feel that ZEC currently presents a 50-50 chance of opportunity and risk. With short positions turning profitable and technical indicators showing oversold conditions, it suggests a possible short-term rebound, such as testing the key level of $300. However, the overall market is still weak, with Bitcoin leading the decline, making it difficult for ZEC to rise independently. Therefore, my opinion is: don't be overly pessimistic, a rebound from oversold conditions is likely, but be prepared for fluctuations. What retail investors should do now is not to bet on direction but to patiently wait for signals.
So, is this wave of ZEC a trap or a pie? What do you think? Let's discuss your strategies in the comments section, follow me for daily updates on the cryptocurrency market, and let's make profits together! Don't let the sharp decline scare you! Follow Bai Yue, who analyzes the tactics of the main players cutting leeks daily, teaching you counterintuitive operations, while others sell at a loss, you buy the dip, and while others chase highs, you retreat! Join the fan group now for exclusive access to Bai Yue's survival guide during market crashes, helping you transform from a leek to a sickle in the crypto market!
