Zcash’s ZEC token fell 12% amid a broader downturn for privacy-focused cryptocurrencies. Approximately $52 million exited ZEC’s perpetual futures market, with $2.98 million in positions liquidated. However, the asset saw roughly $18 million in spot market inflows, indicating underlying buy-side interest that could support a potential recovery despite weakening momentum indicators and dominant sell-side volume.
Privacy tokens face continued pressure from capital outflows, worsening an already fragile market environment. Zcash’s ZEC token slid 12% as this capital flight intensified.
Momentum indicators show clear signs of exhaustion for Zcash. The MACD histogram shows bullish momentum fading, while the Chaikin Money Flow indicates trading activity has favored the sell side.
The clearest sign of capital flight emerged from the perpetual futures market. According to CoinGlass data, approximately $52 million exited, with $2.98 million in positions liquidated.
Total Open Liquidity in ZEC perpetual contracts stood near $400 million. The Long/Short Ratio dropped to 0.923, reflecting stronger short positioning.
Despite mounting derivatives pressure, sentiment has not completely turned against the bulls. The Open Interest Weighted Funding Rate showed long contracts still hold relative dominance, though it is trending lower.
The spot market adds nuance to the outlook, as spot investors continue to accumulate. According to CoinGlass, buyers deployed roughly $18 million into ZEC on February 18.
If buying pressure persists into the daily close, bulls could regain short-term control. In that case, sustained spot demand may improve the probability of a rebound.
