Zcash is showing renewed strength after a sharp bounce in the last 24 hours, signaling the potential repeat of a familiar pattern from recent market history. 

The privacy-focused altcoin has begun reversing its earlier losses, and if momentum continues building, the recovery could come at a significant cost to short traders positioned against the rally.

Zcash Has Its Holders’ Support

Zcash’s recent movement is closely tied to shifts in investor sentiment reflected by the Chaikin Money Flow (CMF) indicator. The CMF is currently dipping but remains above the zero line, which traditionally signals that inflows still outweigh outflows. Although a downward tilt often implies weakening buying pressure, ZEC’s historical behavior suggests otherwise.

Each time the CMF hovered just above zero, Zcash noted a quick resurgence in inflows, triggering price rebounds even before the indicator turned firmly bullish. This positioning suggests optimism remains alive despite the dip. 

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ZEC CMF. Source: TradingView

The broader macro momentum surrounding Zcash adds further intrigue. A liquidation map analysis reveals a significant threat to short traders if ZEC extends its climb. Technical cues point toward an impending rise, and the next major resistance sits near $600. A move to this level would trigger an estimated $30.8 million in liquidations for short positions.

This potential wipeout creates an additional layer of pressure on bearish traders, who may step back temporarily to avoid heightened risk. Historically, large-scale short liquidations often amplify upside momentum, accelerating price rallies and strengthening short-term bullish sentiment.

ZEC Liquidation Map. Source:

ZEC Price May Be Able To Bounce

Zcash is up 12.6% over the last 24 hours, hinting at early recovery signals. Despite this jump, ZEC has yet to reclaim the nearly 60% gains it logged at the start of the month. Still, the indicators mentioned above paint a bullish picture that suggests more upside may be within reach.

If ZEC can break above $521 and push through the $600 barrier, a path toward $700 could open. This move would force widespread short liquidations and reinforce the bullish reversal, helping ZEC regain lost ground more quickly.

ZEC Price Analysis. Source: TradingView

However, failure to breach $521 may weaken the recovery outlook. In that case, Zcash could retrace toward $441 or even fall below $400. This would invalidate the bullish thesis and place the altcoin back into a broader corrective trend.