The whale known as the "largest short seller of ZEC" on Hyperliquid has started to secretly reduce their holdings and escape in the past few days! They have cut their ZEC short position from 16.5 million USD down to only 9.1 million, and immediately went to short other coins. However, strangely, the price of ZEC has not collapsed and is still holding at 397 USD. Has this big player sensed some danger and made an early exit? Or is it that a script targeting retail investors has changed chapters? Today, Baiyue will combine firsthand information and hardcore technical charts to thoroughly uncover the details of this situation.
In-depth news analysis:
"Whale" operation review, a horror movie: This address is not to be trifled with. On October 10, when the price of ZEC was around 184 USD, they began to short, but the price kept rising, and they continued to increase their position stubbornly, suffering a maximum floating loss of 21 million USD! This is simply a "death charge." But they managed to hold on, and now, taking advantage of the price drop, they are starting to orderly close their ZEC and STRK short positions.
Key action: Take profit on ZEC, switch to MON: He closed part of his ZEC short position and increased his MON short position, which has already gained 150%! This is clearly a 'change of birds', withdrawing from one battle and redirecting firepower to another battlefield he believes has better opportunities. His view on ZEC has shifted from 'dead short' to 'taking profits at this stage'.
The overall pattern remains unchanged: Don't think he is bullish overall! He is still the biggest short seller of ETH, ZEC, and MON on Hyperliquid, with total short positions reaching $113 million! The short positions in ETH are his main source of profit.
Bai Yue believes that his core strategy is still bearish on the overall market or certain mainstream coins, but he has chosen to temporarily retreat on the ZEC battlefield.
The technicals are starkly presented:
Signs of 'stabilizing': Although the price is still within the purple descending channel, it is indeed bearish overall. However, upon closer inspection, there has been a recent 'declining volume' where the price is slowly grinding down while the trading volume is decreasing. This indicates that selling pressure is waning, and those who want to exit have mostly done so, somewhat like a fist hitting cotton.
Hidden rebound signals: The MACD indicator is underwater but has shown a golden cross. The RSI indicator is also hovering around 50, not entering the extremely oversold zone. This indicates that the downward momentum is weakening, and there are signs that bulls are quietly organizing a counterattack.
Key positions to watch: The most important level right now is $400. If it can stabilize above 400 with increased volume, it is very likely to test the upper channel or even the pressure level of 500. The hard support below is at 300, and near the lower Bollinger Band at 375.
Here’s the most straightforward operational advice:
So, don’t be scared by the 'largest short seller running away'; this may actually be a short-term reversal signal!
For friends with empty/light positions: Do not chase shorts now! The risks outweigh the opportunities. You can take a small position and tentatively set up a short-term long order near $395-400, strictly placing stop-loss below $375.
For friends who have been trapped previously: Don’t panic and cut losses anymore. If your position is not heavy, you can hold patiently and wait for this potential rebound to appear, then consider reducing positions near the pressure level to lower the cost basis.
At which specific point should one enter, and where is the safest stop-loss? Bai Yue's village has already provided reminders; those who want to follow along can become villagers of Bai Yue!
Bai Yue's personal opinion:
The reduction of positions by the giant whale short sellers coincidentally occurs at the time when ZEC's technical aspect shows signs of 'stabilizing' and a rebound is in the making. This is likely not a coincidence, but rather these 'smart money' are cashing in profits early, avoiding potential risks of a technical rebound due to their informational or cognitive advantages. Their retreat itself will reduce market selling pressure, which may create conditions for a rebound. The next question is whether it will be a rebound or a continuation of the downward trend? The key is whether the $400 position can be forcefully taken!
What retail investors should do is 'patiently wait for opportunities and act decisively'. Follow Bai Yue to receive daily real-time strategy updates and loss-cutting tips!
