Zcash Latest Updates: ZEC Risks $5.65M—Stacked Gains Face Liquidation Threat

One trader has utilized a pyramiding approach with

(ZEC) long positions, accumulating $5.65 million in unrealized gains by taking advantage of ZEC's recent 400% rally to a seven-year peak of $586, as reported by . This method involves using paper profits to increase the size of the position, a tactic that has become more popular as ZEC experiences strong and heightened institutional interest in privacy-centric cryptocurrencies, according to the report.

The trader initiated the strategy with an entry at $410, then reinvested profits from subsequent gains to buy more, ultimately averaging up to $513.5 and building a position of 55,000

coins, the World report details. This compounding strategy has been further fueled by ZEC's solid fundamentals, such as the adoption of its shielded pool (now 30.41% of circulating supply) and progress in zero-knowledge (ZK) technology, according to . However, the effectiveness of this approach depends on favorable market trends, as the risk of liquidation remains significant.

Recent price movements in ZEC have been influenced by large holders and leveraged trades. A notable whale recently entered a 5x leveraged long, earning over $2 million in unrealized profits, according to

. At the same time, total long liquidations on ZEC/USDT pairs have reached $16.05 million, compared to $3.65 million in short liquidations, indicating increased vulnerability to a possible downturn, the OKX analysis observes. Experts caution that if ZEC falls below $450, it could trigger a wave of long liquidations and weaken the bullish trend, as noted in the Bitget article.

The wider crypto sector has also shown mixed trends. Zeta Global (ZETA), a marketing technology company, posted a 26% year-over-year revenue increase for Q3 2025, but its stock dropped 5.22% after earnings, reflecting investor wariness amid broader economic uncertainty, according to

. This volatility highlights the links between digital assets and traditional markets, with ZEC's surge partly fueled by around expanding crypto infrastructure, the Bitget article notes.

Although pyramiding can boost returns, it also brings considerable risk. The trader's liquidation threshold is $500.8, so a swift market reversal could wipe out all gains, the Bitcoin World report cautions. Institutional and retail involvement in ZEC's rally has diverged, with falling Chaikin Money Flow (CMF) values indicating less institutional capital, according to the OKX analysis. While retail-driven rallies can be volatile, they demonstrate the asset's appeal to speculative traders but raise concerns about long-term stability.

Technically, ZEC remains bullish in the near term, with major Fibonacci targets at $594 and $847, according to the OKX analysis. However, overbought RSI readings and bearish divergence point to a possible retracement. Traders should keep a close eye on whale activity and leverage levels, as sudden exits by large holders could spark rapid corrections, the Bitget article warns.

The example of the ZEC pyramiding strategy highlights both the potential rewards and dangers of riding momentum in highly volatile markets. As ZEC continues through a delicate bullish phase, market participants are urged to balance risk and ambition to avoid overexposure in an environment where fortunes can change quickly, the Bitcoin World report concludes.