After several weeks of wild swings, Zcash has entered a quiet phase with price volatility decreasing significantly. This deceleration created a symmetrical triangle pattern characterized by rising lows and falling highs.
As ZEC shrinks within this structure, traders are watching closely as investor action will determine its next decisive move.
Zcash sales gain momentum
On-chain data shows that Zcash holders are becoming more cautious. Nansen’s indicators show that ZEC balances on centralized exchanges are steadily increasing. This trend typically indicates investor selling intent as coins move from private wallets to trading venues in anticipation of further declines.
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The 16% increase in exchange balances in the past 24 hours suggests that holders are prioritizing capital preservation over accumulation. This behavior reflects a lack of confidence and could increase selling pressure and weigh on prices during the consolidation phase.
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Selling pressure often spills over into derivatives markets, amplifying risk through liquidations. However, in the case of Zcash, the liquidation map shows asymmetry, which limits the acceleration of the decline at this time. Short positions face significantly higher total exposure around $500, approximately $48 million, compared to long exposure of $25 million concentrated around $357.
This imbalance means that short sellers are relatively isolated for now, while long traders have more immediate risks. Bullish participation may further weaken if ZEC declines and long positions are unwound. Such an outcome would likely reduce leverage demand and keep futures trading in check until clearer directional signals emerge.
ZEC price awaits clear direction
ZEC continues to trade within a symmetrical triangle, recording converging highs and lows. This structure typically precedes sharp moves as volatility reduces. As prices approach the top, traders should expect a decisive breakout or breakout to occur, primarily due to spot market flows and derivative positioning.
The current situation leans towards downside risks. Sustained selling and rising exchange balances increase the likelihood of a break below $405. A move towards $340 is likely to trigger an extended liquidation. This turn of events could further compound losses and send Zcash price towards the $300 level as bullish belief wanes.
A bullish alternative remains possible if selling pressures subside and capital inflows return. A clean breakout of the top of the triangle near $504 will invalidate the bearish setup. Such a move could force a short-term liquidation and allow for a rapid advance towards $600 as momentum shifts decisively in the buyers’ favor.
