**Massive ZEC Outflow from Kraken: What It Means for Zcash Price**
A recent withdrawal of 7,714 ZEC (Zcash), valued at approximately $4.12 million, from the Kraken exchange has caught the attention of traders and analysts. This large outflow was conducted by a newly created wallet with no prior activity, strongly suggesting a long-term holding intent rather than short-term trading.
**What Happened During the ZEC Kraken Withdrawal?**
The withdrawal involved coordinated batches, all directed to a dormant wallet. The strategic accumulation removed a significant amount of ZEC from exchange order books, immediately reducing available supply. While there was no instant price reaction—likely due to robust derivatives market liquidity—the reduced supply on exchanges weakens sell pressure in the medium term.
**Why Are ZEC Exchange Outflows Important for Price Action?**
Zcash has repeatedly defended a key demand zone at $300–$320, forming a rounded bottom structure—a classic technical pattern signaling potential trend exhaustion and reversal. After reclaiming the $401 level, ZEC surged up to $528 and is now testing resistance in the $520–$550 area, with $536 as a critical level to watch. Pullbacks have remained shallow, and the MACD momentum indicator continues to flash positive momentum.
Crucially, ZEC’s exchange outflows, especially from platforms like Kraken, have historically resulted in gradual uptrends instead of sudden price spikes. This is in contrast to prevailing bearish sentiment in the derivatives markets. Current data shows a 35% short to 34.65% long split in positioning, with a Long/Short Ratio of 0.53. Despite these numbers, ZEC has established higher lows above major support—indicating greater risk for shorts than for broader trend weakness.
**The Bearish Derivatives Scenario Meets Bullish Spot Dynamics**
Despite increasing exposure, short sellers have been unable to push ZEC below the $401 support level, which is beginning to undermine bearish strategies. On-chain data confirms that this fresh accumulation contradicts the short-heavy derivatives market.
**Is Zcash Poised for a Short Squeeze?**
There’s mounting evidence of liquidation stress among short sellers. According to CoinGlass, ZEC recent liquidations reached $1.77 million worth of shorts against just $182,000 worth of longs, with the majority coming from Binance ($967,260). These liquidations occurred as ZEC price climbed to $535–$540.
Stable price action continues to punish shorts, and the funding rate has recovered from negative territory—currently at 0.0027%—which suggests the market isn’t overheated. Open Interest also remains steady, indicating healthy repositioning rather than excessive speculation.
**Technical Outlook: Resistance and Recovery Levels**
With exchange supply tightening and bullish technicals in play—including a rounded bottom and recovering MACD—ZEC is targeting resistance at $550 and potentially as high as $800 if current momentum holds.
**Conclusion**
The recent ZEC Kraken withdrawal highlights growing spot demand, even as derivatives markets remain crowded with short positions. Large-scale liquidations, stable funding rates, and higher lows all force further pressure on bears. As ZEC tests key resistance zones, continued on-chain tracker monitoring and technical analysis on TradingView should provide the next confirmation of a sustained recovery.
Stay tuned for further updates as Zcash navigates this pivotal market phase.
https://bitcoinethereumnews.com/tech/zcash-kraken-withdrawal-may-herald-upside-as-shorts-face-liquidation-stress/
