Zcash to $2,292? Biggest Onchain ZEC Short Adds $8.4 Million Despite Losses

According to onchain data, the largest tracked on-chain ZEC short has added to his position despite increasing losses.

Garrett Jin, identified by on-chain data as the trader behind the position, has added another 7,000 ZEC worth about $8.4 million to his short, according to Lookonchain. The move comes after the position accumulated more than $24 million in unrealized losses as the ZEC price surged. This brings Jin’s total short exposure to 39,760 ZEC, with a nominal value of over $47 million. The reported liquidation price stands at $2,292.

Jin’s ZEC short has become one of the most closely watched positions after Zcash staged a strong rally.

At the time of writing, Zcash was up 1.2% in the last 24 hours to $1,176 and up 44.1% weekly after clearing $1,000 on Friday for the first time since 2016, with its recent rise forcing a significant number of short traders out of leveraged positions. The privacy token has gained 137% in the last 30 days and is up 2,389% on a 1-year basis.

Zcash bears trapped

ZEC reached a high of $1,254 on Sunday in a four-day climb, marking a major continuation of a rally that has taken the cryptocurrency beyond the $576 price, which marked the entry point for Jin’s ZEC short position with 3x leverage.

Jin’s decision to put his liquidation price at $2,292 may not be a mistake, as he is an informed trader himself. He also opened a Bitcoin long position at $77,089, suggesting that his bets are not only restricted to Zcash.

Zcash reaching $2,292 from its current price would mark a 95% increase, with this level now crucial in this particular short trade.  

If the ZEC price remains below $2,292, Jin’s short bet stays unliquidated, although the position is already facing substantial losses. If Zcash hits $2,292 while his position remains open, it could face forced liquidation.

Jin is not the only ZEC bear who seems trapped by Zcash’s latest price increase. According to Lookonchain, a trader, ‘0x362a,’ shorted 15,785 ZEC worth $18.95 million 3 days ago and is now sitting on a $5.27 million loss. This trader had an excellent track record before, with 26 wins in a row.