Zcash (ZEC) plummeted over 21% Monday, triggering more than $6 million in long liquidations as the market reacted to a recent ETF filing from Grayscale. The sharp downturn erased recent gains and broke a month-long rally.
The sell-off appears to be a classic “sell the news” event. Grayscale filed paperwork on November 26 to convert its Zcash Trust into a spot ETF, a move many anticipated would attract institutional interest. Instead, the filing prompted widespread profit-taking.
On-chain data reveals the cascade was amplified by significant liquidations. One whale alone was liquidated for $2.39 million, adding intense sell pressure. The price action confirmed a bearish double-top pattern, breaking down from a long-term ascending channel that had supported its rally since October.
Underlying the technical breakdown are persistent concerns about the project’s governance. Ethereum founder Vitalik Buterin recently cautioned the Zcash community against adopting token-based voting models, a statement that added to existing investor unease.
ZEC is getting aggressively shorted. Over 45% of open positions are now betting on a further price decline. Analysts note the next major technical support level sits near $285. Read: $364.01 at press time.
