Zcash dropped 14.36% in 24 hours after its rally toward $1,300 unwound a $1.35 billion pile of open interest, wiping out leveraged longs. One whale's combined losses totaled around $4.33 million in liquidations. ZEC has since found support near $1,099, with a cluster of liquidation liquidity between $1,180 and $1,200 offering a potential upside path.
Leverage flush erases ZEC's rally gains
Zcash entered a sharp correction after an extended rally had carried it toward the $1,300 region. At the time of reporting, ZEC had dropped 14.36% over 24 hours, erasing part of its recent gains.
The prior rally had attracted heavy speculative activity, with open interest hitting $1.35 billion. That elevated leverage left bulls exposed once the price retreated from its highs. Lookonchain reported that two leveraged ZEC longs were fully liquidated as the token pushed lower, with the whale's combined losses totaling around $4.33 million.
Long liquidations usually accelerate declines, since positions get closed automatically once traders can't maintain sufficient collateral. Removing that excess leverage could, however, limit further forced selling if ZEC stabilizes and speculative positioning resets.
Technical picture cools from overbought levels
The leverage flush unfolded as broader market conditions stayed unfavorable for risk assets, with Bitcoin also facing selling pressure and weakening sentiment. ZEC's daily RSI had previously moved above 75 before the reversal, and the token swept liquidity around $1,300 before failing to sustain a move above the $1,245 resistance zone.
The rejection sent the price toward the $1,075-$1,100 fair value gap, where buyers are now responding. ZEC has since rebounded toward the $1,099 area, and the RSI has cooled to 63.85, remaining above neutral territory. On the DMI indicator, the +DI signal at 35.68 stayed above the -DI signal at 11.80, while the ADX held around 56.84.
Liquidation pools point toward $1,200
A strong hold of the $1,075 support could open a recovery move toward $1,245, then another attempt at $1,295. A breakdown below that support could instead expose the lower FVG near $970 and the $800 order block.
The setup aligns with liquidity sitting above ZEC's current price. The 24-hour Binance Liquidation Heatmap shows dense concentrations around the $1,180-$1,200 zone, which could act as an upside magnet if ZEC extends its rebound. A break through $1,200 could then expose an additional cluster around $1,240-$1,250, while downside liquidity near $1,050 keeps the current support zone significant for ZEC's next move.
Source: AMBCrypto
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