Zcash Shorts Reach 72% as ZEC Holds Above $1,100

Zcash (ZEC) is facing a heavily bearish derivatives market even as the token holds above $1,100, raising the possibility of another short squeeze if buyers maintain control.

Data from CoinGlass shows that 72.05% of Binance's top-trader accounts are short ZEC, compared with 27.95% holding long positions. That puts the Long/Short Ratio at just 0.39.

The positioning is notable because Zcash has already staged a major rally. ZEC recently broke above $1,000 for the first time in nearly a decade and has gained roughly 120% over the past month.

Garrett Jin's $47M ZEC Short Under Pressure

One of the biggest bearish bets belongs to trader Garrett Jin.

Jin holds 39,760 ZEC short, worth roughly $47 million, after adding another 7,000 ZEC near $1,195. His average entry is around $576.30, leaving the position with an unrealized loss of roughly $24 million.

The reported liquidation level is around $2,292, although that should be viewed as a liquidation threshold rather than a ZEC price target.

The position highlights the risk facing traders who continue betting against Zcash while the broader market remains willing to absorb supply.

Spot Buyers Challenge the Short Bias

Derivatives positioning is not telling the whole story.

ZEC's 90-day Spot Taker CVD remains buyer-dominant, suggesting aggressive spot buyers are continuing to absorb available supply. That creates a notable divergence between bearish futures positioning and stronger buying activity in the spot market.

The setup also connects with the broader derivatives trend. Zcash has emerged as one of the major drivers behind the recent increase in altcoin futures activity, with its open interest recently reaching record levels.

Related: Altcoins Overtake Bitcoin in Open Interest for the First Time Since 2024

Falling Open Interest Adds a Warning

The bearish positioning has not been accompanied by expanding derivatives activity.

ZEC open interest fell 11.49% to $2.41 billion over 24 hours, while derivatives volume dropped 42.06% to $5.99 billion. The decline suggests traders are reducing exposure rather than aggressively adding new leveraged positions.

That makes the 72% short ratio less conclusive as a bearish signal. If prices rise while shorts remain crowded, however, traders could be forced to close positions and add further buying pressure.

Can ZEC Hold the $1,023 Support?

ZEC recently failed to break the $1,256.68 resistance and entered a pullback. The current technical structure points to a fair value gap extending toward $1,023.60, making that area an important level for the bullish setup.

The daily MACD remains constructive, with the MACD at 138.95 above its 112.00 signal line and a positive 26.94 histogram.

If buyers defend the $1,023 area and ZEC moves back toward $1,256, the crowded short positioning could become increasingly vulnerable.

For now, $1,023 is the key downside area, while $1,256.68 remains the major upside hurdle. The combination of heavy short positioning and persistent spot demand keeps the possibility of another ZEC short squeeze firmly in play.