Zcash (ZEC) Price Chart Screams a Bull Trap With 30% Crash Risk

Core Insights - Zcash (ZEC) price shows signs of a potential bull trap after a significant rebound, rising nearly 55% from $120 to around $185 before settling at approximately $171 [1] - Large money inflows are beginning to fade, indicating a potential shift in momentum as institutional and whale investors exit their positions [2][5] - The current price rally appears to be driven more by retail enthusiasm rather than strong capital inflows, suggesting a weakening buying demand [3] Market Dynamics - The Chaikin Money Flow (CMF) has been declining since October 1, although it remains above zero, indicating some persistent inflows [2] - Derivatives data shows a significant imbalance in long positions on the Binance ZEC/USDT perpetual pair, with cumulative long liquidations at $16.05 million compared to $3.65 million in shorts, indicating over-leverage on the long side [4][5] - This over-leverage could lead to a long squeeze if prices drop, exacerbating the decline [5] Technical Analysis - The 12-hour price chart indicates a bearish pattern, with Zcash trading near the upper trendline of a rising wedge, which typically breaks downward [6] - A bearish divergence is observed, where the price made higher highs while the Relative Strength Index (RSI) made lower highs, suggesting weakening buying momentum [7] - A drop below $151 could confirm a breakdown, potentially leading to a decline to $120, representing a nearly 30% fall from current levels, with further support at $97 and $61 in deeper corrections [8]