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A large cluster of leveraged long positions around the $860 price level has traders on guard for a possible liquidation event that may result in increased volatility for Zcash (ZEC).
A liquidation cluster is an area where many leveraged positions could be liquidated if the price of the asset moves against the traders. CoinGlass data shows a long liquidation cluster worth $1.4 million is near $860.
Zcash is currently trading at $877, and a move lower to $860 could put long-position holders under liquidation pressure.
If ZEC approaches this level, forced liquidations could add to the selling pressure and possibly accelerate a move to the downside. Liquidations occur when traders who have borrowed or leveraged money are unable to maintain margin on their positions.
But the presence of a liquidation cluster does not mean that the price will fall to $860. It identifies a potential area of market vulnerability rather than a confirmed price target.
Key support levels to watch
Zcash fell below the $1,000 mark amid a weeklong selloff further compounded by concerns over leadership turmoil at Nvidia Corp., which weighed on the artificial intelligence trade.
A broader weakness in the crypto market coincided with strength in the U.S. dollar. On Friday, the dollar index reached its highest level since April 2025, following hotter-than-expected inflation earlier this week that increased expectations of further Fed tightening, pushing Treasury yields and the dollar higher while pulling down both cryptocurrencies and gold.
Zcash fell to a low of $861 early in Saturday's session, after marking seven consecutive days of losses since November 7, 2026. If today ends in a loss, it will mark the eighth consecutive day of losses. Zcash lost momentum after dropping below the 50 DMA, a support level that had buoyed its price surge in August 2026, and a return above it is crucial for its price recovery.
Large buy walls are present, according to on-chain data, at $845, $811, and $805, marking key support levels for Zcash that might halt the bears' rampage.