ZCash (ZEC) experienced a dramatic rally, surging nearly 1000% in a few weeks, pushing its price to peaks around $720 before entering a sideways range between $741 and $424. Analyst Gerhard from Bitcoin Strategy on YouTube highlighted that ZEC's performance is heavily correlated with Bitcoin, noting a 30% pullback mirroring BTC's decline during the same period.
On-chain data reveals slowing growth, with daily users on Binance Smart Chain peaking on November 7 and activity fading since. Wallet distribution shows increased participation from retail investors, with smaller wallets holding around 2 ZEC growing from 2,700 to 3,200, while large wallets saw minimal growth, indicating potential weakness in sustaining the rally.
Derivative markets added pressure, with a $236.6 million outflow and open interest dropping to $861.5 million, leading to $32.95 million in liquidations. However, the funding rate turned positive at 0.0195%, and the Money Flow Index (MFI) suggests capital inflows, hinting at a possible rebound. AMBCrypto's analysis points to spot accumulation of $72 million, with retail investors buying the dip, but the Chaikin Money Flow (CMF) indicates emerging selling pressure.
Technical warnings include extreme leverage, with open interest at historical highs, and trading volume nearing $10 billion daily, levels Gerhard described as unsustainable. The market cap behavior resembles past peaks around $8 billion, raising concerns of a reversal. Despite year-to-date gains exceeding 1000%, the combined signals suggest ZEC may be overextended and vulnerable to a downturn.
LIVE
HYPE
TON
BTC
MON
APEING
ETH