According to latest data, Zcash (ZEC) has successfully reclaimed the $400 level after recent trading sessions, showing a 5.28% daily gain despite facing significant technical challenges. The privacy coin's recovery comes as the broader crypto market starts July on a positive note, with Bitcoin gaining 6.26% from its July 1 low of $57,800 and the altcoin market cap expanding by 4.05%. However, ZEC's Open Interest has grown by only 1.33%, indicating a lack of speculative interest that could limit the sustainability of the current recovery. As reported by AMBCrypto, this lack of bullish follow-through can negatively impact altcoins like ZEC, suggesting that the current price action may be short-lived without stronger institutional backing.
Despite Zcash struggling to maintain the $400 level, significant whale activity has emerged in recent trading sessions. According to AMBCrypto, a major whale deposited $10.12 million into HyperLiquid and opened a 2x long position on 20,338 contracts worth $8.1 million. The whale is currently down $135,000 as ZEC traded below $400, but maintains $4 million in USDC and appears positioned to increase its long exposure. This renewed whale activity comes after a three-day period of whale orders in the futures market, with the Futures Average Order Size data from CryptoQuant showing big whale orders for three consecutive days. The whale's optimism is shared by broader market participants, as the altcoin's Long/Short Ratio jumped to 1.05, indicating that traders mostly opened long positions and reflecting growing optimism for ZEC gains.
The daily chart shows ZEC trading just beneath the 61.8% Fibonacci retracement level near $419, a zone that rejected multiple recovery attempts following the June breakdown. Price also remains below a descending trendline that has defined the lower-high structure since the post-crash rebound peaked near $530 in mid-June. According to crypto analyst Team LAMBO, a decisive move through the immediate ceiling could change the short-term outlook, with potential targets at $440 and $490 if the breakout materializes. The 1-day chart shows a bearish internal market structure, with the $486.61 low made in mid-May falling below the local range's low, though buyers were unable to defend this demand zone for long. The subsequent waves of selling forced a price drop below $400 on two occasions in recent weeks, with the CMF at +0.08 showing significant buying pressure but insufficient to overcome the $480-$540 supply zone that must be conquered for sustained bullish recovery.
The current market structure identifies $360-$380 as the local support zone that ZEC must defend to avoid further downside pressure. As per AMBCrypto, if the altcoin falls below this support level once again, swing traders and investors can expect the move to continue toward the next support level at $300. The $480-$540 resistance zone represents the key battleground for ZEC swing traders, with the former range above $500 being pivotal for revival. If the short-term Bitcoin bounce fails to gain traction, a momentum reversal could hurt ZEC and push it back below $400. Despite renewed whale demand, the altcoin currently sits below the 20, 50, and 100-day moving averages, indicating a weaker trend structure that could see ZEC drop below the 200-day EMA at $382 if the attempted whale comeback fails to inspire significant upside.
