Zcash Whale Places $4.92M Short Bet Against ZEC — Is a Rally to $520 Still Possible?

A prominent crypto whale known as Garrett Bullish has once again taken a bearish stance on Zcash, opening a new 2x leveraged short position valued at $4.92 million at an entry price of $417.80. This move follows two previously successful trades that collectively generated $11.66 million in realized profits, further cementing his track record of timing market corrections with notable precision.

Interestingly, the same trader simultaneously holds a long position on Bitcoin — 1,268 BTC worth approximately $76.45 million — though that bet is currently sitting around $20.90 million in the red. The co-existence of a profitable ZEC short and an underwater BTC long illustrates the complex, multi-directional strategies employed by high-profile market participants.

When major players like Garrett Bullish make such moves, the broader market tends to take notice. Many retail and institutional traders closely monitor whale activity before adjusting their own positions, meaning his bearish conviction on ZEC carries weight beyond just his own exposure.

However, on-chain and derivatives data tell a somewhat different story. The 90-day Futures Taker Cumulative Volume Delta (CVD) for ZEC remains tilted in favor of buyers. This metric indicates that aggressive market participants have been consistently lifting sell offers rather than driving prices down through bid-hitting. In practical terms, this means buyers have been absorbing available liquidity at a faster pace than sellers throughout the recent period.

Despite this buyer-dominant order flow, ZEC has not managed to stage a meaningful trend reversal. Broader market sentiment has stayed cautious following recent price declines. If buying pressure persists while fresh selling momentum fades, it could gradually begin to challenge the bearish positioning held by whales like Garrett Bullish. On the flip side, sustained whale conviction could cap any meaningful upside even if order flow remains favorable.

From a technical analysis perspective, ZEC continues to trade below its previously broken ascending channel. Once that structure gave way, market dynamics shifted in favor of sellers. The key resistance level to watch sits at $520, while $335.50 represents the next meaningful downside support in the event of further selling.

That said, there are early signs that downside momentum may be losing steam. Price has stabilized around $413 rather than continuing its descent. Adding to the cautiously optimistic picture, the Stochastic RSI has dropped to readings of 4.03 and 6.45, placing both indicator lines deep in oversold territory. These levels typically signal that selling exhaustion may be approaching rather than indicating fresh downward momentum.

Notably, the Parabolic SAR indicator still sits below the current price, which suggests the broader trend framework has not completely abandoned the bulls despite the recent pullback. A confirmed recovery back above the broken ascending channel would significantly strengthen the bullish case and potentially open the door toward a challenge of the $520 resistance level.

Conversely, if ZEC fails to reclaim the channel and gets rejected at current levels, the probability of a retest of the $335.50 support zone would increase considerably.

In summary, the situation for Zcash remains finely balanced. Garrett Bullish's multi-million-dollar short adds visible bearish pressure, yet derivatives market data continues to show resilient buyer participation. The coming sessions will likely determine whether oversold signals and persistent buying activity can push ZEC toward $520, or whether whale-driven selling ultimately steers prices toward lower support levels.