Zcash (ZEC) has recently captivated market attention with a significant price rebound, signaling a potential shift in momentum after a period of selling pressure. This resurgence is underpinned by strong technical indicators and an increasingly bullish sentiment reflected across its derivatives market, pointing towards renewed confidence among traders.
ZEC's Resurgent Price Action
Zcash experienced a notable 15% rally within 24 hours, propelling its price to $224.20 as buyers regained control. This recovery was initiated by a bounce off its 20-day Exponential Moving Average (EMA) at $187.75, establishing a critical short-term support level. Further reinforcing the optimistic outlook, the Stochastic RSI has rebounded from oversold territory, indicating that selling momentum is dissipating and setting the stage for a potential retest of the crucial $300 resistance zone.
Bullish Signals from Derivatives and Liquidity
The derivatives market is echoing this positive sentiment, providing compelling evidence for continued upside potential. Analysis of Coinalyze data reveals an Aggregated Long/Short Ratio consistently above 1.0, currently standing at 1.3, which highlights a strong bias towards long positions and an improvement in overall market sentiment. Concurrently, Open Interest has climbed to $170.6 million, a trajectory reminiscent of prior rallies fueled by robust retail inflows. These combined metrics underscore growing trader confidence and suggest that short liquidations clustering near $210 could further propel ZEC's price. Moreover, liquidity analysis from CoinGlass indicates significant liquidity clusters above current price levels, most notably at $300, backed by approximately 1.49 million in liquidation leverage. This identifies $300 as the next high-interest target for traders. Additionally, a new demand zone is forming between $200 and $210, establishing a crucial short-term support base that could fuel an extended rally, provided trading volumes remain strong.
