Zcash faces selling pressure as shorts grow

• Zcash fell below US$450 as traders increased bearish positions following a rejection near US$475.
• A prominent trader expanded a Zcash short position to about US$14.9 million amid weakening market momentum.
• Technical indicators suggest selling pressure has increased, although price direction remains uncertain.

Zcash (CRYPTO:ZEC) fell below US$450 after failing to hold gains near US$475, while a prominent trader increased a short position to about US$14.9 million as bearish sentiment strengthened.

According to Onchain Lens, trader Garret Jin increased a short position to 32,759.57 ZEC valued at about US$14.9 million, while long-to-short ratio data from Coinalyze showed short positions outnumbered long positions.

Data from CoinGlass showed Zcash recorded about US$727 million in futures outflows and US$721 million in inflows over the past three days, while the Relative Strength Index fell to 49 and the Moving Average Convergence Divergence indicator remained negative.

Market participants have increased bearish positioning following the recent price decline, although technical analysis does not guarantee future price movements, and as Zcash (CRYPTO:ZEC) is a cryptocurrency there is no share price available.

Analysts said continued selling pressure could see Zcash test lower support levels, while a recovery in buying activity could allow the cryptocurrency to reclaim the US$450 level.

The report highlighted that derivatives positioning and technical indicators currently reflect weaker market momentum, with traders continuing to monitor changes in futures activity and broader cryptocurrency market sentiment.

At the time of reporting, Zcash price was $452.34.