Zcash price continues to demonstrate bullish resilience despite clear evidence that its parabolic phase might be over.
However, a faction of investors remained confident that it could still extend its rally, while others anticipate a bigger correction.
Among the investors expecting a bearish Zcash outcome was James Wynn, a famous Hyperliquid whale.
He predicted in a recent post that the privacy coin will fall to the $300 price range before the end of November.
James Wynn also revealed that he executed a Zcash short position at the $684 price point. This suggests that his short position was already in profit since the cryptocurrency pulled back substantially since then.
It is worth noting that James Wynn has a mixed track record of wins and losses in the recent past.
Nevertheless, his prediction raises questions, considering that the cryptocurrency has been showing signs of bullish weakness.
Zcash (ZEC) Price Attempts Some Recovery After a Weekend Retracement
The bearish expectations from James Wynn reflect recent observations on Zcash (ZEC) price action. The cryptocurrency previously made headlines after an impressive parabolic move in October.
However, its performance this month signaled that the bulls were losing their momentum. The cryptocurrency also experienced significant pullbacks recently, signaling that early buyers were securing profits.
The ZEC price just concluded its most recent bearish week during which it retreated by roughly 18%.
Zcash still achieved a bullish performance in the last 24 hours despite the retracement, with price rallying by almost 10%.
Interestingly, this upside occurred during the same trading session that James Wynn predicted that the ZEC would extend its bearish performance.
The privacy coin bounced back on Sunday morning after interacting with the RSI mid-point.
This recovery potentially confirms that the bulls remained strong, especially if the price remains above the 50% RSI level.
A sizable rally occurred after Zcash’s previous retracement in the second week of November. A similar outcome could potentially put James Wynn’s short positions in the bullish crosshairs.
What Zcash Liquidation Profile and Open Interest Reveal
Zcash liquidation map revealed that both longs and shorts were almost evenly distributed.
The liquidation heatmap revealed that the highest consolidation of long liquidation leverage on exchanges was just over $18 million near the $551 price point.
On the opposite side of the spectrum, the highest short liquidation leverage was just over $25 million at the $605 price point.
Interestingly, Zcash maintained volatile price movements in the last 24 hours, with the day’s top and bottom falling within the same liquidation range.
Despite this, liquidations remained relatively low at just over $11 million in total in the last 24 hours. Short liquidations were dominant at over $6 million, while longs were just shy of $5 million.
The elevated volatility observed with its recent price movements also affected appetite for leverage. Zcash open interest retreated from its $1.38 billion ATH on 17 November to just over $919 million in the last 24 hours.
In summary, the bearish expectations for Zcash reflect the first wave of sell pressure after its impressive rally.
However, the privacy coin has also been gaining popularity among the institutional class, which may underscore bullish long-term prospects. This may support a long-term bullish outlook and limit its downside.