Although ZEC has been strong recently, I feel it can only rise to around 1600~1800. There are three reasons.
1、This wave of ZEC’s breakout started around 800, which is also the concentrated zone for the “air force’s” chips. After it reaches 1600~1800, even 1x leverage will likely get liquidated. At that point, if the market maker still doesn’t sell, the chips may end up stuck in their hands.
2、Right now, ZEC’s market cap ranks 8th and is around $20 billion. With a larger market cap, it becomes harder for any single large player to control the market. To push it higher, you need an even bigger buy-side force, and the market maker’s cost-effectiveness for pumping would be quite low.
3、ZEC doesn’t have the kind of grand narrative like BTC or ETH. The value of the coin itself is limited. Its rapid rise is mainly because in the short term the attention has been too hot, shorts are crowded, and a chain of liquidations leads to a fast spike. Short-squeeze fuel accounts for a large portion. On top of that, the market maker’s chips have been held without being sold; but if they don’t distribute, a pump has no real meaning. Selling takes time, and they need enough retail investors to take the other side.
For this CS coin (ZEC), in the short term it’s still best not to chase pumps or panic-sell. If you haven’t entered yet, it’s better to wait and observe; it’s not too late to enter after it breaks below key levels. #Zcash周涨45%创2016年来新高
1、This wave of ZEC’s breakout started around 800, which is also the concentrated zone for the “air force’s” chips. After it reaches 1600~1800, even 1x leverage will likely get liquidated. At that point, if the market maker still doesn’t sell, the chips may end up stuck in their hands.
2、Right now, ZEC’s market cap ranks 8th and is around $20 billion. With a larger market cap, it becomes harder for any single large player to control the market. To push it higher, you need an even bigger buy-side force, and the market maker’s cost-effectiveness for pumping would be quite low.
3、ZEC doesn’t have the kind of grand narrative like BTC or ETH. The value of the coin itself is limited. Its rapid rise is mainly because in the short term the attention has been too hot, shorts are crowded, and a chain of liquidations leads to a fast spike. Short-squeeze fuel accounts for a large portion. On top of that, the market maker’s chips have been held without being sold; but if they don’t distribute, a pump has no real meaning. Selling takes time, and they need enough retail investors to take the other side.
For this CS coin (ZEC), in the short term it’s still best not to chase pumps or panic-sell. If you haven’t entered yet, it’s better to wait and observe; it’s not too late to enter after it breaks below key levels. #Zcash周涨45%创2016年来新高