Zcash’s 400% October Run Shows Signs of Exhaustion — Is a Pullback Next?

Core Insights - Zcash (ZEC) has experienced a significant price surge of nearly 400% in October, with a 44.2% increase this week and an additional 6.6% in the past 24 hours, indicating strong buying pressure [1][2] Price and Momentum Analysis - The price of Zcash has been making higher highs from October 11 to October 29, while the Relative Strength Index (RSI) has shown lower highs, indicating a bearish divergence and suggesting a potential pullback risk [2][3] - The current surge in Zcash's price has led to an imbalance where the RSI has not kept pace, typically signaling a cooldown in momentum [3] - Despite the bearish divergence, Zcash's recent price strength may limit the pullback risk, as it continues to ride on flag-breakout momentum [4] Money Flow and Investor Behavior - The Chaikin Money Flow (CMF) has been trending down, hovering near zero, which suggests that large investors may be taking profits rather than increasing their positions [5][6] - For Zcash to regain momentum, the CMF needs to increase, and the RSI should rise above 75, aligning momentum with price in the short term [6] Market Positioning and Liquidation Risks - The market is heavily tilted towards long positions, with over $20.8 million in long leverage compared to $10.7 million in shorts, indicating that most traders are betting on further price increases [7] - This positioning creates a risk of a long squeeze, where a sharp downward move could force overleveraged long positions to close, potentially driving prices lower [8] - Significant liquidation clusters are identified between $308 and $295, marking high-risk zones if selling pressure intensifies [9]