- Zcash (ZEC) drops 16% as more than $28 million in leveraged positions are liquidated.
- ZEC remains above major moving averages, but the $1,050–$1,100 support zone could determine its next move.
Zcash (ZEC) has fallen sharply after its recent surge above $1,200, with the 16% decline triggering more than $28 million in liquidations across leveraged positions.
The sell-off shows how quickly sentiment can change after a steep rally, although ZEC remains well above the major moving averages that supported its recent breakout.
Zcash Drop Triggers $28 Million Liquidation Wave
ZEC’s latest decline has put heavily leveraged traders under pressure, with total liquidations reaching $28.37 million over the past 24 hours.
Long positions accounted for most of the losses at $23.75 million, while short positions contributed $4.62 million. The imbalance suggests that many traders were positioned for the rally to continue after ZEC climbed above $1,200.
Liquidations also accelerated during the decline. About $11.49 million in positions were liquidated over a 12-hour period, including $9.40 million from long trades.
The sharp move followed a rapid rally that took ZEC from below $500 to above $1,200 within a few weeks. Such a steep advance left the market vulnerable to profit-taking and forced liquidations once buying pressure weakened.
ZEC Price Still Holds Above Major Moving Averages
Despite the correction, ZEC remains technically stronger than it was before the recent breakout.
The 20-day moving average is around $910, while the 50-day and 100-day averages are near $689 and $646, respectively. Another longer-term moving average sits around $531.
ZEC’s Relative Strength Index has also cooled to about 64 after moving into overbought territory during the rally. The decline suggests that bullish momentum has weakened, but the RSI remains above the neutral 50 level.
$1,050 to $1,100 Becomes Key Support
The $1,050 to $1,100 area could become an important zone for ZEC as traders assess whether the correction is nearing an end.
Holding this range could give ZEC room to consolidate and attempt another recovery. A decisive break below it, however, could expose the price to a deeper pullback toward the $910 area around the 20-day moving average.
For now, the liquidation wave looks more like a sharp reset after an unusually fast rally than a complete breakdown in the broader trend. However, ZEC could remain highly volatile until selling pressure eases and buyers regain control of the recent highs.
Zcash (ZEC) has dropped 16% after its rally above $1,200 triggered more than $28 million in liquidations. ZEC remains above major moving averages, but the $1,050 to $1,100 range could determine whether the correction deepens or another recovery begins.
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