TLDR
- Zcash dropped about 16% after recently trading above $1,200.
- ZEC liquidations reached $28.37 million over the past 24 hours.
- Long positions accounted for $23.75 million of total liquidations.
- The Zcash price remains above its major daily moving averages.
- RSI cooled to around 64, showing weaker momentum after the rally.
Zcash (ZEC) faced heavy selling after a sharp rally pushed the privacy-focused cryptocurrency above $1,200. The Zcash price then fell about 16% from its recent peak, triggering liquidations across leveraged positions. Data showed $28.37 million in ZEC liquidations over the past 24 hours, with long traders taking most losses.
Zcash Price Drop Triggers Heavy Liquidations
Long liquidations reached $23.75 million during the period, while short liquidations totaled $4.62 million. The figures show that many traders had positioned for further gains before the market reversed. Selling pressure increased as the Zcash price moved lower from its high.
Liquidations reached $11.49 million over 12 hours, including $9.40 million from long positions. During the latest four-hour period, total liquidations stood at $1.34 million. Short positions accounted for $1.19 million as traders adjusted quickly to changing price direction.
Despite the decline, ZEC remains above moving averages on the daily chart. The 20-day average sits near $910, while the 50-day and 100-day averages are around $689 and $646. The longer-term moving average remains close to $531.
The Zcash price rose from below $500 to above $1,200 within several weeks. That fast move left a wide gap between the market price and key trend levels. The decline has reduced some of that gap while traders watch whether buyers can defend higher support zones.
Momentum Cools After Rapid Rally
The Relative Strength Index has fallen to about 64 after previously reaching overbought levels. The reading remains above the neutral area, but it shows weaker momentum after the recent rally. Price volatility remains elevated after the sharp rise and reversal.
The cooling RSI follows heavy profit-taking and forced selling from leveraged traders. Market activity now centers on whether the Zcash price can stabilize after the liquidation wave. A steadier trading range could reduce pressure from leveraged positions and allow the market to form clearer support.
Traders are watching the $1,050 to $1,100 area as near-term support. Holding that range could allow ZEC to consolidate after the recent decline and attempt another move higher. A break below the zone could increase selling pressure.
If support fails, the Zcash price could move toward the 20-day average near $910. For now, ZEC remains above its broader trend levels, but price swings remain large. Traders continue to monitor support, momentum, and liquidation data as the market adjusts.
