Zcash (ZEC) has faced aggressive short positioning among top traders on Binance, even as a prominent short position remains deeply underwater following a recent price rally. According to CoinGlass analytics, short accounts represented approximately 72.05% of positions, compared to 27.95% holding long positions, resulting in a Long/Short Ratio of 0.39.
This positioning indicates that top traders remain skeptical about ZEC sustaining its elevated price structure. However, prominent trader Garrett Jin's sizeable short position highlights the risks associated with betting against the asset. Jin holds a 39.76K ZEC short position valued at around $44.90 million, having entered near an average price of $576.30. With Zcash trading near $1,128.58, the price difference has driven his unrealized losses to approximately $21.98 million, though his liquidation level sits higher at $2,540.50.
Spot Demand Challenges Bearish Sentiment
Despite the heavy short bias among top traders, spot market activity presented a contrasting view of market demand. Data from CryptoQuant indicates that the 90-day Spot Taker CVD indicator remained buyer-dominant, showing that aggressive buyers continued to control cumulative taker activity. This divergence demonstrates that dominant short positioning has not translated into equivalent selling pressure in the spot market, as buyers continue to absorb available supply despite correction expectations.
Meanwhile, broader derivatives market participation has cooled. Zcash Open Interest (OI) fell 11.49% to $2.41 billion over a 24-hour period, and derivatives trading volume dropped 42.06% to $5.99 billion. These declines suggest that traders are limiting derivatives exposure rather than aggressively adding fresh leveraged positions, meaning the heavy short account ratio lacks confirmation from expanding OI.
Technical Structure and Elliott Wave Analysis
On the daily timeframe, ZEC has entered a pullback phase within a broader Elliott Wave structure after failing to clear the $1,256.68 resistance level. Trading near $1,128.58, a fair value gap (FVG) sits directly below the current market price, extending toward the $1,023.60 support area. This pullback is identified as a potential Wave (4) correction.
Technical indicators remain constructive despite the price retreat. The Moving Average Convergence Divergence (MACD) indicator stood at 138.95, remaining above its signal line at 112.00, while the histogram stayed positive at 26.94. If buyers persistently defend the fair value gap, the technical structure could support a subsequent Wave (5) expansion.
