Key Takeaways
- A wave of short liquidations has triggered a bullish shift in Zcash’s short-term momentum.
- Key technical indicators show improving strength as ZEC attempts to reclaim a critical support zone.
- The weekend’s price action could determine whether ZEC confirms a broader reversal heading into 2025 and 2026.
The Zcash (ZEC) market is undergoing a rapid sentiment shift as a surge in short liquidations triggers renewed optimism heading into 2025 and 2026. After weeks of declining momentum and heavy selling pressure, ZEC is showing early signs of stabilizing, with fresh liquidity and improved market depth driving hopes of a near-term recovery. The latest data suggests that traders may be witnessing the early phase of a bullish reversal rather than a fleeting bounce—an important shift as the broader crypto market gears up for another decisive cycle.
In the past several hours, ZEC experienced one of its most significant liquidation events in months, flipping market psychology far more aggressively than anticipated. With volatility expanding and derivatives positioning resetting, analysts are now watching closely to see whether Zcash can reclaim its critical support zone before the weekend—a level that could define its trajectory into 2025 and 2026.
Short Liquidations Flip Market Sentiment in Zcash’s Favor
Zcash recorded the third-largest short liquidations in the past 12 hours, trailing only Bitcoin and Ethereum. More than $5.36 million in short positions were liquidated in that window, rising to $7.39 million over the full 24-hour period. This sudden unwind created a textbook short-squeeze scenario, forcing bearish traders to buy back positions at unfavorable prices and injecting immediate upward momentum into ZEC.
The effect was decisive. Open interest dropped sharply, signaling a flush-out of speculative shorts that had amplified downside pressure throughout the week. Historically, such rapid liquidation phases have acted as turning points for mid-cap altcoins—especially those with thin liquidity and high leverage participation such as ZEC.
Momentum indicators are now responding:
- Buying activity on major spot exchanges is rising.
- The Relative Strength Index (RSI) is moving out of oversold territory.
- Short-term EMAs are flattening after weeks of decline.
- Bid-side liquidity in order books has strengthened compared to earlier trading sessions.
Individually, these signals suggest stabilization. Combined, they indicate the potential start of a reversal cycle that could carry ZEC into more constructive price action as the market approaches 2025.
Can ZEC Reclaim Its Critical Support Zone?
The next major question for traders is whether Zcash can reclaim the pivotal support level it recently lost. This zone, which has now flipped into resistance, represents the most important technical battleground for bulls. A successful reclaim would not only confirm stronger trend reversal signals but also set the stage for a broader recovery into early 2026.
If bullish momentum persists, analysts expect ZEC to retest immediate resistance levels and possibly enter an impulse rally if price breaks out with conviction. Such a move would shift the market narrative firmly away from the downtrend that dominated recent months.
If momentum weakens, however, ZEC could slip back into its lower consolidation range. That would delay recovery and likely keep the market neutral until clearer catalysts emerge. For now, the balance of control has shifted slightly in favor of buyers, but confirmation in the next 24–48 hours will be decisive.
Chart structure reinforces this narrative. ZEC recently rebounded from the 0.5 Fibonacci retracement level near $392, a pattern suggesting that buyers are defending critical territory. A potential double-bottom is forming around the 0.382 Fibonacci zone, often indicative of a medium-term trend reversal in development. Meanwhile, MACD is showing declining bearish momentum and a potential bullish crossover, while RSI recovery indicates improving strength.
Volume spikes on green candles support this shift, confirming renewed accumulation. If momentum holds, ZEC may attempt a move toward the 0.618 Fibonacci level near $475, a key threshold that would reinforce the upward trajectory many traders are watching for the 2025–2026 period.
Weekend Movement May Define Zcash’s 2025–2026 Setup
The coming weekend now holds outsized importance for Zcash traders. If ZEC maintains its current momentum and reclaims its support level, it could signal the beginning of a broader reversal that shapes market behavior heading into 2025. This would align with the cyclical strength expected across the crypto sector as liquidity conditions improve and institutional appetite returns.
However, caution remains warranted. The reversal signs are still early, and any pullback in volume or failure to secure higher highs could stall progress. A premature retracement would keep ZEC locked in its current range and delay the more bullish 2025–2026 technical structure that traders are anticipating.
For now, Zcash enters the weekend with renewed interest, stronger liquidity, and rising momentum—factors that collectively suggest the token may be transitioning into a new phase after months of selling pressure. Whether this marks the beginning of a sustained trend reversal will depend on the strength of follow-through in the sessions ahead.
Conclusion
Zcash’s latest surge in short liquidations has reshaped market sentiment at a critical time for the privacy-focused token. With signs of stabilization emerging across multiple technical indicators and liquidity strengthening, ZEC is now positioned to test whether bulls can regain a key support zone ahead of the weekend. A successful reclaim could place Zcash on a more constructive trajectory heading into 2025 and 2026, while a failure to follow through would delay confirmation of a true reversal. For traders watching ZEC closely, the next two days may prove pivotal.
