Garrett Bullish shorts $4.92M in ZEC as buyers defend futures market

A whale trader with a $11.66 million winning track record on Zcash just reopened a bearish bet, but derivatives data shows buyers are still absorbing selling pressure.

Garrett Bullish, the whale trader tracked on Hyperliquid via Lookonchain, opened a fresh 2x leveraged short on 11,780 ZEC worth $4.92 million at $417.80 on June 28. The position follows two earlier ZEC trades that generated $11.66 million in realized profits, including a short that capitalized on Zcash's sharp selloff after the Orchard shielded-pool flaw was patched earlier this year.

Despite the renewed bearish conviction from one of Zcash's most visible whale accounts, derivatives data painted a different picture. The 90-day Futures Taker Cumulative Volume Delta on ZEC remained buyer-dominant, according to CryptoQuant, showing that aggressive market participants continued lifting offers rather than hitting bids. That imbalance suggested buyers had absorbed available liquidity more aggressively than sellers throughout the recent period, even as ZEC struggled to reclaim higher price levels.

The divergence between whale positioning and order-flow data leaves ZEC at a critical juncture. If buyers maintain control of market orders while fresh selling pressure fades, the market could gradually challenge bearish positioning. Otherwise, persistent whale conviction could continue limiting upside despite encouraging order flow.

ZEC Tests Key Technical Levels After Channel Breakdown

Zcash traded near $413 at the time of writing, with a 24-hour range between roughly $394 and $424, according to CoinGecko. The token continued trading below its broken ascending channel after failing to reclaim the former support structure, shifting market structure in favor of sellers. The nearest major resistance sits at $520, while $335.50 remains the next significant support.

The Stochastic RSI dropped to 4.03 and 6.45, placing both lines deep inside oversold territory — readings that reflect exhausted selling conditions rather than renewed strength. However, the Parabolic SAR remained below the price, indicating that the broader trend still favored buyers despite the recent pullback.

ZEC has fallen about 20 percent since the start of the year and more than 37 percent in the past month, after surging above $650 earlier in the year during a privacy-coin rally. The token is trading near its 200-day moving average around $410, a level that has historically acted as a long-term trend anchor.

Short Squeeze Potential Builds as Bearish Positioning Concentrates

The extreme short positioning across ZEC derivatives markets has created conditions that could fuel a sharp reversal. The long-short ratio on Binance remains well below 1.0, with short sellers greatly outnumbering bullish traders. When a market becomes heavily one-sided, even a modest positive catalyst can force traders to buy back positions, triggering a self-reinforcing rally through liquidations.

Garrett's broader book adds another layer of complexity. He also holds a 1,268 BTC long worth about $76.45 million, with an unrealized loss near $20.09 million. That makes his account a split-risk book: short ZEC, long Bitcoin. If Bitcoin stabilizes while ZEC weakens, both sides benefit. If Bitcoin keeps falling while ZEC rebounds, the account faces pressure from both directions.

A recovery above the broken channel would strengthen bullish conviction and could trigger a squeeze on the concentrated short positioning. Failure to reclaim resistance would likely keep $335.50 as the next downside target.

This article is for informational purposes only and does not constitute investment advice.