Overview: Derivatives data shows ZEC had $8.0 million in liquidations in the past 24 hours, with shorts accounting for $6.1 million of that. Futures open interest also rose 7%. This indicates leveraged short positions were being forced to cover, creating additional upward momentum.
What it means: The price move was amplified by a derivatives squeeze, where traders betting against ZEC were stopped out, adding fuel to the rally.
Watch for: Funding rates and open interest changes. A return to neutral or negative funding could signal the squeeze is over.
What it means: The price move was amplified by a derivatives squeeze, where traders betting against ZEC were stopped out, adding fuel to the rally.
Watch for: Funding rates and open interest changes. A return to neutral or negative funding could signal the squeeze is over.