Zcash whale loses $3.8M betting against a rally that just won't quit 🐋

A wallet linked to trader karna0x closed a $9.8 million ZEC short position at a loss of more than $3.8 million as Zcash extended a three-day advance, according to Onchain Lens. The privacy-focused token breached the $500 resistance level and reached a local high of $545 before pulling back to $525 at the time of writing, a 5.94% gain on the daily chart.

The unwind of karna0x's position was part of a broader squeeze against bearish bets. Data from CoinGlass shows more than $11 million in ZEC short positions were liquidated during the move, compared with roughly $2.2 million in long liquidations. As shorts were forcibly closed and other traders covered or flipped direction, Zcash's Long/Short Ratio climbed to 1.095, indicating a tilt toward bullish positioning in the market.

ZEC has rebounded sharply from a drop that took it from $630 to $251, and technical indicators point to a firming trend. The Directional Movement indicators show +DI at 25 and -DI at 24, with ADXR above ADX, a configuration that traders monitor for evidence of a developing uptrend. The asset's Relative Strength Index and other smoothing measures have moved in tandem with price, though the gap between bullish and bearish pressure remains narrow.

The immediate levels to watch are $550 and $600, according to the technical setup described. A failure to hold above $500 on any renewed profit-taking would reopen the path to prior lows, while a continued push could see the token retest the upper resistance band first established near $630.