Traders are closely monitoring a significant cluster of leveraged long positions in Zcash (ZEC) around the $860 price level, which could trigger a liquidation event and increase market volatility. According to CoinGlass data, this long liquidation cluster is valued at $1.4 million. With Zcash currently trading at $877, a drop to $860 could force long-position holders to liquidate, potentially accelerating downward momentum.
Liquidations occur when traders with leveraged positions fail to maintain required margins. While the presence of a liquidation cluster highlights a vulnerable area, it does not guarantee that the price will fall to $860. Instead, it signals a potential risk zone for market participants.
Zcash has been under pressure, falling below the $1,000 mark amid a weeklong selloff. Concerns over leadership turmoil at Nvidia Corp. and broader crypto market weakness, compounded by a stronger U.S. dollar, have contributed to the decline. The dollar index hit its highest level since April 2025 on Friday, driven by hotter-than-expected inflation data, which raised expectations of further Federal Reserve tightening.
Zcash reached a low of $861 early in Saturday's session, marking seven consecutive days of losses since November 7, 2026. If today ends in a loss, it will extend the losing streak to eight days. The cryptocurrency lost momentum after dropping below its 50-day moving average, a key support level that had supported its price surge in August 2026. On-chain data indicates large buy walls at $845, $811, and $805, which could provide support and halt further declines.