ZEC, the primary cryptocurrency of Zcash, has been commanding attention in the digital asset market due to its remarkable performance in the recent week. The upward momentum suggests a shift in sentiment among major holders and traders, as highlighted by data from the analytics company Coinglass.
Zcash Witnessing $7.8 Million Inflows
Recent data from Coinglass reveals a substantial $7.85 million inflow into exchanges over the past four days, indicating a surge of deposits into these platforms.
In the realm of digital currencies, an inflow typically signals a possible sell-off and implies a potential decrease in the token’s value in the near future.
This increase in exchange inflow may be a response to ZEC’s impressive 115% surge in price and the emergence of bearish price patterns, suggesting that investors may be looking to secure profits by offloading their holdings.
Both long-term investors and traders seem to be reacting similarly, with Coinglass data revealing a long/short ratio of 0.89 for ZEC, indicating prevailing bearish sentiment among traders.
Currently, 52% of prominent traders are holding short positions, while 48% are holding long positions.
Combining various on-chain metrics paints a picture of bearish control emerging, implying a possible price correction or downturn in the near future.
Technical Analysis and Critical Levels for ZEC
As per CryptoCrypto’s technical analysis, ZEC is currently encountering strong resistance at the $80 mark, facing rejection at this level.
Historically, the altcoin has experienced selling pressure and price reversals upon reaching this level, a trend that analysts expect to continue based on on-chain data.
Considering recent price movements, it is likely that ZEC could undergo a price correction or decline in the upcoming days.
However, the altcoin’s Relative Strength Index (RSI) currently sits at 78, indicating overbought conditions and hinting at a potential price reversal soon.
At the time of reporting, ZEC was trading around $72.70, marking a 21% increase in value over the past 24 hours.
Simultaneously, trading volume soared by 120% during the same period, indicating elevated trading activity from both traders and investors compared to the previous day.