That big red candle at 9 a.m. sent $ZEC tumbling along with $BTC , from 1317 straight down to 1234. Now it's hovering around 1240. My thinking is simple: don't chase shorts here; scale in with small positions between 1225 and 1240.
First, let's look at the money flow. The U.S. spot ZEC ETF saw another net inflow on October 28, around $2.07 million, following $3.45 million the day before. It's had inflows for several days in a row, with no outflows, and total assets are now around $757 million. The NU7 upgrade is still scheduled for around November 5, reducing block times from 75 seconds to 25 seconds. Today's drop was driven by the broader market, not by any bad news specific to ZEC.
Now let's look at futures. The market-wide long/short account ratio has stayed between 0.67 and 0.77, with more retail accounts short. The long/short ratio for large traders' positions is still around 1.27, so big money hasn't pulled out of its net-long position. Open interest has fallen from a high of about 479,000 coins over the past two days to 454,000. There wasn't a rush of new shorts coming in during the sell-off; it looks more like longs reducing leverage. Funding rates are basically flat. Retail is short and large traders are long, so when the price drops in this kind of setup, I'd rather be on the side of the big traders.
As for price levels, 1225–1240 lines up with the 4-hour EMA100 and EMA50, and it's also a range that's been tested repeatedly over the past couple of days. So I'll split my entry into two: take half near 1240, then add more at 1225. If it breaks below 1200, I'll admit I'm wrong and close everything—no holding on. To the upside, first let's see if it can reclaim 1300. If it does, then I'll look toward the previous high above 1330 and take half off around there.
The broader market still hasn't stabilized, so keep the position size small. Don't go all in.
First, let's look at the money flow. The U.S. spot ZEC ETF saw another net inflow on October 28, around $2.07 million, following $3.45 million the day before. It's had inflows for several days in a row, with no outflows, and total assets are now around $757 million. The NU7 upgrade is still scheduled for around November 5, reducing block times from 75 seconds to 25 seconds. Today's drop was driven by the broader market, not by any bad news specific to ZEC.
Now let's look at futures. The market-wide long/short account ratio has stayed between 0.67 and 0.77, with more retail accounts short. The long/short ratio for large traders' positions is still around 1.27, so big money hasn't pulled out of its net-long position. Open interest has fallen from a high of about 479,000 coins over the past two days to 454,000. There wasn't a rush of new shorts coming in during the sell-off; it looks more like longs reducing leverage. Funding rates are basically flat. Retail is short and large traders are long, so when the price drops in this kind of setup, I'd rather be on the side of the big traders.
As for price levels, 1225–1240 lines up with the 4-hour EMA100 and EMA50, and it's also a range that's been tested repeatedly over the past couple of days. So I'll split my entry into two: take half near 1240, then add more at 1225. If it breaks below 1200, I'll admit I'm wrong and close everything—no holding on. To the upside, first let's see if it can reclaim 1300. If it does, then I'll look toward the previous high above 1330 and take half off around there.
The broader market still hasn't stabilized, so keep the position size small. Don't go all in.
