#ZEC跌超13% Deciphering Zcash’s $1.35 billion leverage surge: Can ZEC rebound to $1,200?

After continuing to rise and approaching the $1,300 price area, Zcash entered a sharp correction. ZEC fell 14.36% within 24 hours, erasing part of the gains from its previous rapid uptrend. Therefore, this decline reflects a significant shift from the strong momentum that recently drove ZEC to new highs.

What caused the price decline?
ZEC’s previous rally reportedly attracted heavy speculative activity, with open interest reaching $1.35 billion at one point. As a result, after the price pulled back from its high, this high leverage increasingly exposed long positions to risk. For example, Lookonchain reported that two leveraged long positions were completely liquidated as the price of ZEC tokens fell. The whale’s losses totaled approximately $4.33 million, highlighting the scale of the forced liquidations.
Historically, long liquidations typically accelerate declines because leveraged positions are automatically closed when traders fail to maintain sufficient collateral. This forced selling may have intensified ZEC’s price correction, as existing supply pressure triggered further liquidations. However, if ZEC stabilizes and speculative positions reset, the removal of excessive leverage could limit forced selling.
Macroeconomic pressure exacerbated ZEC’s overbought correction.
Recently, the leverage frenzy erupted as the broader market environment remained unfavorable for risk assets. Following its recent rally, leading cryptocurrency Bitcoin also faced selling pressure and weakening market sentiment. ZEC entered this environment after experiencing an unusually sharp price increase, with profit-taking clearly evident as the token’s price approached the $1,300 area.
Notably, technical conditions also appeared to be becoming strained before the reversal, with the daily RSI previously rising above 75. This combination left Zcash facing broader weakness after buyers struggled to extend the recent rally. However, the current correction has eased these tensions, bringing technical support areas into focus.

ZEC holds a key FVG, RSI retreats from overbought conditions
Recently, the leverage frenzy erupted as the broader market environment remained unfavorable for risk assets.
Following its recent rally, leading cryptocurrency Bitcoin also faced selling pressure and weakening market sentiment. ZEC entered this environment after experiencing an unusually sharp price increase, with profit-taking clearly evident as the token’s price approached the $1,300 area.
Notably, technical conditions also appeared to be becoming strained before the reversal, with the daily RSI previously rising above 75. This combination left Zcash facing broader weakness after buyers struggled to extend the recent rally. However, the current correction has eased these tensions, bringing technical support areas into focus.

ZEC holds a key FVG, RSI retreats from overbought conditions
On the daily chart, Zcash swept liquidity near $1,300 but failed to sustain its rally above the $1,245 resistance zone. This rejection led to a sharp correction toward the $1,075–$1,100 fair value gap (FVG), where buyers are attempting to respond. The price subsequently rebounded to around $1,099, indicating that the current support area is attracting fresh demand.
At the time of analysis, the RSI had fallen to 63.85 after retreating from overbought territory, but it remained above the neutral zone. On the DMI, the +DI signal stood at 35.68, above the -DI signal at 11.80, maintaining an overall bullish directional structure.
In addition, the ADX signal remained near 56.84, indicating that the current trend still had considerable directional strength. If the $1,075 support level holds effectively, it could prompt a rebound toward $1,245, followed by another attempt to test the $1,295 liquidity zone.
However, a break below this support could send the price down toward the lower FVG level near $970 and eventually to the $800 order block.

Liquidation pools could pull ZEC’s price toward $1,200.
A potential technical recovery is also closely linked to the substantial liquidation liquidity above Zcash’s current market price.
Notably, the bn 24-hour liquidation heatmap shows liquidity highly concentrated in the $1,180–$1,200 price range.
If ZEC extends its rebound, these clustered zones are likely to become magnets for an upward move, triggering the forced liquidation of leveraged short positions. A successful breakout above $1,200 could expose additional liquidity clusters near the $1,240–$1,250 area, which closely aligns with the technical resistance level.
In addition, substantial downside liquidity exists near $1,050, making the current FVG crucial to ZEC’s next directional move. Ultimately, successfully holding the $1,075 support level would sustain the liquidity recovery, while losing that support would weaken this outlook.$ZEC