Zcash Under Pressure: $4.92M Short Bet Placed — Will ZEC Rally Back to $520?

A well-known crypto trader operating under the alias Garrett Bullish has once again taken a bearish stance on Zcash, opening a fresh leveraged short position on ZEC worth $4.92 million at an entry price of $417.80. The trade uses 2x leverage, signaling a calculated but firm conviction that the asset is headed lower in the near term.

This move comes on the heels of two previously profitable trades that collectively netted $11.66 million in realized gains, cementing the trader's track record for identifying price tops and timing market corrections with notable precision. Adding complexity to the picture, Garrett Bullish simultaneously holds a long position on Bitcoin — 1,268 BTC valued at $76.45 million — though that trade currently sits approximately $20.90 million in the red, suggesting mixed outcomes across his active book.

High-profile traders of this caliber tend to influence broader market sentiment, as retail and institutional participants alike closely monitor their activity before making positioning decisions.

Despite the heavyweight bearish bet, on-chain derivatives data tells a somewhat different story. The 90-day Futures Taker Cumulative Volume Delta (CVD) has remained skewed toward buyers, indicating that aggressive market participants have been consistently lifting offers rather than hitting bids. This imbalance points to sustained demand-side activity even as ZEC struggled to recover lost ground.

The persistence of buyer-driven order flow suggests that selling pressure has not gone unchallenged. However, this buying activity has yet to produce a meaningful trend reversal, largely because overall market sentiment remains subdued following the recent sharp decline. Should fresh selling exhaust itself while buyers retain control of market orders, a gradual challenge to bearish positioning becomes plausible. On the other hand, if prominent traders like Garrett Bullish double down on their conviction, upside momentum may remain capped regardless of positive order flow dynamics.

From a technical standpoint, ZEC continues to trade below a previously intact ascending channel that was broken to the downside. The failure to reclaim that structure has shifted market dynamics in favor of sellers. Key levels to watch include $520 on the upside — the nearest major resistance — and $335.50 as the next meaningful support below current prices.

Notably, the pace of decline appears to have slowed, with price finding temporary stability around $413 rather than continuing its fall. The Stochastic RSI has plunged to readings of 4.03 and 6.45, placing both signal lines deep in oversold territory. These figures typically reflect exhausted selling conditions and may precede a short-term bounce. In contrast, the Parabolic SAR indicator currently sits below the price, suggesting the broader trend still leans bullish despite recent weakness.

A confirmed recovery above the broken ascending channel would meaningfully strengthen the case for bulls and potentially challenge the $520 resistance zone. Conversely, another rejection at current levels could open the door for a retest of $335.50.

In summary, while Garrett Bullish's latest multi-million-dollar short adds weight to the bearish narrative, derivatives data has not fully aligned with that view. The outcome for ZEC likely hinges on whether the asset can reclaim key structural levels — or whether whale conviction will continue suppressing any recovery attempt.