Zcash's recent rebound attempt has fallen flat, with the altcoin's price plummeting to a low of $440 before slightly bouncing back to $447. This collapse has led to a steep downtrend, with ZEC closing at lower lows since its failed attempt to reach $543 four days ago.
As a result, whales are turning bearish and closing their positions, with one notable example being Garret Jin, who closed his ZEC long for a $417K profit. This move suggests skepticism and a lack of market confidence in the altcoin's future performance.
The rising liquidation levels have also contributed to this bearish sentiment, with over $17 million worth of longs liquidated over the past three days. The demand for shorts has surged significantly, with shorts accounting for 53.6% compared to 46% longs, as per Coinalyze data.
The altcoin's Relative Strength Index (RSI) made a bearish crossover and fell deeper into the bearish zone, dropping to 45, indicating that sellers have taken significant control of the market. The Aroon Line further shows the market's weakness, with Aroon Down jumping to 71 while the Aroon Up dropped to 0.