The Zcash price is at a decisive technical crossroads following the formation of a head-and-shoulders pattern on its daily chart, threatening a bearish breakdown soon. According to analyst Ananda Banerjee, the price convergence near the $301 zone acts as a critical neckline for the current technical structure.
Despite the uncertainty, this technical level coincides with a buildup of bearish leverage in the derivatives markets, where short positions currently dominate the landscape. At present, nearly $15 million is positioned for a downside move, signaling a strong conviction among traders regarding a potential price crash.
Furthermore, market momentum appears to be fading, as the Relative Strength Index (RSI) has failed to break above the 50-point neutral threshold. Thus, the lack of retail demand suggests that buyers are losing strength, leaving the asset vulnerable to a sudden increase in volatility and selling.
Selective accumulation: Mega whales defy the overall negative market trend
In contrast to the widespread pessimism, addresses holding large volumes have increased their stakes by 4.21% over the past 24 hours of trading. This activity by mega whales represents the only significant counterweight, as they seek to defend the support zone located near $350 through strategic buying.
Moreover, data from Nansen reveals that while other whale profiles have reduced their exposure, these large institutional players maintain a bet on recovery. Therefore, the leading privacy cryptocurrency now depends exclusively on this group to prevent the Zcash price from confirming its projected 36% decline.
Which resistance levels must be cleared to invalidate the current bearish scenario?
However, for the negative structure to disappear, the asset must first reclaim the psychological level of $405 in a convincing manner. If the Zcash price manages to close above $456, the mega whales will have succeeded in trapping sellers in a significant bull trap, forcing massive short liquidations.
Ultimately, a daily close below $301 would trigger bearish targets toward $288, accelerating sell-side pressure across the entire privacy coin ecosystem. For this reason, investors must closely monitor the interaction between derivatives liquidity and strong-hand conviction during the upcoming sessions to determine the next trend.
