Zcash (ZEC) Bounces 7% After Core Developer Exit Selloff: What’s Next?

The post Zcash (ZEC) Bounces 7% After Core Developer Exit Selloff: What’s Next? appeared first on Coinpedia Fintech News

Zcash (ZEC) has experienced a sharp correction following news of a core developer’s exit, which negatively impacted short-term market sentiment. This triggered an aggressive selloff, driving the price below key EMAs.

Despite this negative news and the initial selloff, ZEC has rebounded during intraday trading, rising over 7% to $432 on increased trading volume.

The intraday bounce comes just a day after panic-driven selling pushed the price into oversold territory, suggesting that much of the selloff may already be priced in.

The key question now is whether this bounce will develop into sustained buying or fade into another decline.

ZEC Bounces After Selloff: Is More Volatility Ahead?

Zcash (ZEC) surged 7% following a sharp selloff, indicating that buyers are stepping in at key support levels.

The rebound suggests that the market is absorbing the recent negative news. On-chain data also shows that whales and large holders are accumulating after the dip.

Furthermore, analyst Crypto Fella expressed a bullish view, stating that ZEC’s price reversal has played out and it could rally toward $500 soon.

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However, looking at recent price action, after consecutive losses last month, ZEC has formed a fresh lower low, indicating a potential trend change.

Unless ZEC closes strongly above $450, the bullish trend may not resume. Otherwise, a deeper correction toward $400 could unfold in the coming sessions.

What Do Derivatives Data Signals?

Liquidation data from Coinglass indicates a bullish short-term signal. Over $1.88 million in short positions have been liquidated compared to $375,000 in long positions, showing that the closure of a large number of shorts has triggered a quick bounce.

Additionally, open interest (OI) has risen 12.76% to $1.01 billion, reflecting fresh long-position buildup, which could support further gains during the intraday session.

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