Zcash price drops 16%, triggering $28.4M in liquidations
In brief
- Zcash declined 16% from peak, triggering liquidation cascade in leveraged positions
- $28.37M in ZEC liquidations recorded in 24 hours, mostly from longs
- ZEC rallied from under $500 to over $1,200 in weeks before pullback
- Price holds above key moving averages despite decline
- $1,050–$1,100 range emerging as near-term support
Liquidation Cascade Hits Overleveraged Longs
ZEC-related liquidations totaled $28.37 million in the last day, according to liquidation data. Long positions absorbed the brunt of the damage, accounting for $23.75 million of the total, while short liquidations added $4.62 million. Over a 12-hour window during the steepest decline, $11.49 million in liquidations were recorded, with $9.40 million stemming from longs forced to close.
The liquidation surge reflects the velocity of ZEC's preceding rally. In just a few weeks, the token climbed from under $500 to over $1,200, a move that drew aggressive leveraged bets. Traders who'd positioned for continued upside found themselves underwater when momentum reversed.
Technical Setup Remains Resilient
Despite the carnage, ZEC is trading significantly above its major moving averages on the daily chart. The 20-day moving average sits near $910, the 50-day at roughly $689, and the 100-day at about $646. This suggests the broader uptrend structure hasn't broken, even as short-term momentum cooled.
The Relative Strength Index dropped to roughly 64 after cooling from overbought territory, signaling that selling pressure has eased somewhat. The $1,050–$1,100 range is probably where traders will concentrate as short-term support, offering a potential floor if weakness persists.
