$ZEC Might See a Big Correction as Retail Traders Overheat the Market
Zcash has been falling steadily, dropping more than 3% on Friday and losing over 17% this week. The price is under pressure because activity in ZEC’s shielded pools is slowing down, while retail traders are trading aggressively — this can become “exit liquidity” for big investors.
Shielded Pool Activity Is Cooling Down
During September and October, ZEC pumped nearly 10x. At that time, a lot of ZEC moved into the Orchard shielded pool, which reduced the circulating supply and pushed prices even higher.
But after reaching a peak of 4.21M ZEC on Nov 4, the Orchard pool has stopped growing. If fewer users are adding ZEC to shielded pools, it means demand is weakening. The older Sapling pool is also shrinking as people remove funds.
Retail Hype Is Increasing Risk
Even though on-chain demand is slowing, retail traders are becoming more active. CryptoQuant shows high activity in both spot and futures — these spikes usually happen near market tops, like 2021.
CoinGlass data shows futures open interest dropped 7.71% to 977.39M in the last 24 hours, meaning traders are reducing risk before possible volatility.
Key Levels to Watch
ZEC is now under the $500 psychological level.
Price is moving toward the 50-day EMA at $436.
If ZEC closes below $436, it could fall much deeper toward the 100-day EMA at $315 — a 30% drop from current prices.
If it bounces, ZEC may retest $500, then $600, and possibly the $750 high from Nov 7.#zec #cryptouniverseofficial
