Why Zcashs strongest signal may not be enough to overcome THIS group

Since recovering from the $197 support zone, Zcash has remained trapped inside a tight range. The altcoin traded between $200 and $230, reflecting a market still searching for direction.

That consolidation continued on the daily chart as price briefly climbed to a local high near $229 before easing back.

At press time, Zcash [ZEC] traded at $226, up 9.26% in the last 24 hours. During this move, ZEC flipped its short-term Exponential Moving Average (EMA20), indicating improving upside momentum.

Zcash rides on speculative demand

Despite the range-bound structure, Derivatives traders showed increasing bullish positioning.

On the 15th of March, Zcash recorded $160.8 million in Futures Inflows compared to $144.4 million across the 12-hour timeframe.

As a result, Futures Netflows jumped 544% to $16.5 million during the same period.

Source: CoinGlass

On top of that, 24-hour Netflows climbed 14% to $12 million, highlighting continued derivatives participation. Such inflows suggested traders were actively opening positions as market participants positioned for volatility.

That activity also appeared in Open Interest, which rose 10.49% to $371 million.

Rising Open Interest alongside capital inflows typically indicates stronger demand for futures positions.

Source: Coinalyze

Meanwhile, the Long/Short Ratio climbed to 1.23. Long positions accounted for 55.4% while shorts held 44.8%. A ratio above 1 suggested that most traders anticipated further upside.

Momentum indicators flash bullish

With capital flowing into the derivatives market, ZEC showed strengthening upside momentum. Looking at the Relative Strength Index (RSI), the indicator rose from 42 to 47, indicating rising buying pressure.

However, buyers have yet to take control of the market as RSI still remains below 50. Likewise, ZEC flipped EMA20 at $224, further validating this bullish momentum.

Source: TradingView

With these indicators flashing bullish, they signal potential trend continuation if sustained. Thus, if demand holds and RSI forms a bullish crossover, ZEC will flip $230 and target $250 resistance.

However, if the demand turns into only short-term speculation, ZEC will drop towards $205.

Whales pull the market back

While other market participants have shown determination to pull ZEC out of the woods, whales continue to pull the market back.

Spot Average Order Size data showed whales have stacked orders below $220. Increased large orders between $197 and $212 were associated with higher whale participation across these levels.

Source: CryptoQuant

However, these whales have mostly been selling orders. Looking at Spot Taker CVD, sellers have dominated the market over the last 30 days.

Every time Zcash attempted a breakout, whales have stepped in and cashed out, further straining the market. The continuity of these whale behaviors presents significant bearish pressure and could lead to prolonged weakness for ZEC.