- The Rejection: Zcash (ZEC) faces a supply overhang at $380, where sell orders are outpacing buy bids by a 3:1 ratio.
- The Trap: Whales are using retail breakout attempts to offload positions, turning the $380 zone into a “liquidity trap.”
- The Risk: Failure to reclaim this level risks a slide to the $287 support floor as momentum indicators turn bearish.
Zcash (ZEC) is battling a severe liquidity imbalance following its parabolic 1,000% run in 2025, with market structure signaling a decisive shift from accumulation to distribution. After failing to breach the $380 resistance zone, the privacy coin is now trapped in a warzone where institutional sellers are aggressively capping upside momentum.
The ‘3-to-1’ Order Flow Imbalance
Whales tried to influence a bounce with a positive delta, yet their bids did not absorb the intense liquidation pressure. As per analyst Ardi on X, the imbalance showed almost three sellers for every buyer.
The distribution zone near $380 is similar to a trap for bullish traders who expect a breakout. Each attempt to rise toward this level attracts aggressive supply, which turns every brief pump into an opportunity for bigger holders to unload.
As long as ZEC remains below this resistance, bids from whales risk becoming exit liquidity for bears, the analyst noted.
ZEC Price Analysis: What 12H Chart Reveals
ZEC’s 12H chart shows the structure tilting toward bearish momentum after a strong multi-week run. The trendline that supported the previous rally has broken, and price attempts to climb back remain weak.
Indicators across the chart reflect hesitation rather than resolution. Momentum oscillators sit in lower zones without clear direction, and volatility is compressing within the Bollinger Bands after an extended decline.
The region between $430 and $577 stands as the wider supply area that capped ZEC’s parabolic ascent. The red zone overhead remains untouched during this latest rebound, i.e., sellers still dominate broader trend conditions.
Bears continue to defend the breakdown area, showing no signs of fatigue.
For bulls, the main objective is a decisive capture of $380. A clean move above the level opens the way for a potential retest of $430, where the next resistance cluster awaits.
Recovery into the upper band near $577 only becomes possible if ZEC holds above both the trendline that once acted as support.
On the other hand, failure to reclaim $380 exposes ZEC to deeper pullbacks. The $287 region forms the nearest protective level. A breakdown there risks a return to much lower liquidity pockets.
Related: Zcash Price Prediction: ZEC Retains Bullish Bias While Cypherpunk Boosts Holdings
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