Zcash (ZEC) recently staged a notable comeback, experiencing a sharp rally that disrupted its prior short-term downtrend. This resurgence has drawn fresh eyes from across the trading spectrum, yet the underlying market sentiment remains a complex tapestry of optimism and caution, particularly among derivatives traders.
Zcash's Bullish Reversal
Over the last 24 hours, Zcash recorded an impressive rebound, climbing more than 10% and successfully interrupting a persistent downtrend. This recovery was underpinned by key technical indicators. ZEC effectively defended its ascending trend line on the daily chart, marking the third successful defense of this critical support level within the month. Concurrently, the Stochastic RSI signaled a rebound from oversold territory, suggesting that the intense selling pressure might be waning. Should this trend line continue to hold, ZEC could potentially target the $650–$700 region, while a failure to maintain this support might open a path towards $520.
Divergent Trader Sentiment
Despite ZEC's recent price appreciation, market sentiment appears deeply divided. On one hand, data from CryptoQuant indicates a significant surge in Spot Retail Activity following the bounce, reflecting renewed confidence and heightened participation from individual traders who often anticipate further upside. However, derivatives data from Coinalyze tells a different story, with the Aggregated Long/Short Accounts Ratio hovering around 0.928, signaling that short positions still slightly outweigh longs. This disparity suggests an improving surface sentiment countered by persistent caution among futures traders. Adding to this complexity, a prominent Zcash trader (0x152e) exemplifies the market's uncertainty, having closed a large ZEC long at an $846,000 loss, only to immediately reverse course with a leveraged 5x short on ZEC while simultaneously taking a substantial 20x long on Bitcoin. This conflicting behavior underscores the deep divisions and speculative nature currently surrounding Zcash's short-term trajectory.
