- Zcash is consolidating near a critical support zone amid heavy outflows.
- Derivatives activity continues to suppress ZEC’s upside momentum.
- Sui’s breakout reflects strong spot demand and improving trader sentiment
The crypto market is showing clear signs of fragmentation. While some altcoins are finding renewed momentum, others are struggling to hold critical levels as capital rotates aggressively. Zcash (ZEC) and Sui (SUI) now sit on opposite sides of that divide, offering a sharp contrast in sentiment, liquidity, and trader behavior.
Zcash Faces Pressure as Liquidity Dries Up
Zcash has entered a fragile consolidation phase after a swift pullback from its recent highs above $530. At the time of writing, ZEC hovers near $493, a zone that has become a pivotal battleground between buyers and sellers.
Momentum indicators suggest caution. The MACD has flattened and begun to roll over, pointing to fading bullish strength rather than a fresh uptrend. Price action has tightened around the $485–$495 demand zone, an area that previously attracted buyers but is now being tested under weaker conditions.
If this support fails, downside pressure could build quickly, opening the door for a move toward the $450 region. For now, the market appears trapped in consolidation, waiting for either renewed demand or another wave of selling.
Derivatives Activity Continues to Cap ZEC’s Upside
Liquidation data reveals a market heavily influenced by leverage. Early selloffs flushed long positions in the $485–$495 range, triggering a short-term rebound driven by short covering rather than fresh spot demand.
However, each rally attempt has stalled near $520, where short liquidations have absorbed upside momentum. This pattern suggests that ZEC’s price is being shaped more by derivatives positioning than by fundamentals or news.
Without a clean break above $520 supported by spot buying, repeated rejections could increase the risk of cascading liquidations. Until leverage resets, upside moves are likely to remain constrained.
Capital Outflows Highlight Structural Weakness
Zcash has also seen some of the heaviest capital outflows in the market. Over the past seven days, more than $101 million has exited ZEC, signaling active distribution rather than passive rebalancing. Short-term flow data reinforces this trend, with persistent negative readings across intraday timeframes.
Compared to assets like Uniswap or Filecoin, ZEC’s outflows appear sharper and more concentrated. This divergence suggests privacy-focused assets may be facing added regulatory uncertainty and liquidity stress, accelerating capital rotation away from the sector.
While ZEC struggles, Sui has staged a powerful comeback. The token has surged nearly 40% in just over five days, reclaiming key technical levels after dipping to $1.39 at the start of the year.
Also Read: SUI Coin Surges 12% in 24 Hours – Can It Hit $3.3?
SUI’s breakout above its prior range reflects a clear shift in demand. Open Interest has risen sharply, spot buying has strengthened, and funding rates indicate growing bullish conviction. Still, higher-timeframe resistance looms near the $2.03–$2.23 zone, where supply could slow further gains.
Zcash and Sui illustrate how selective the market has become. ZEC remains vulnerable as outflows persist and leverage dominates price action, while SUI benefits from renewed demand and improving sentiment. In this environment, traders appear less willing to wait for broad altcoin recoveries and more focused on assets showing immediate strength.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
