The day before yesterday, I saw an interesting on-chain movement—two wallets dumped a total of $11.1 million in a short period to buy the dip in ZEC, but now they are already floating with a loss of over $2.2 million. The data comes from a major on-chain analysis platform's real-time monitoring, timestamped January 8th, so the information is quite fresh.

This is quite thought-provoking. Having been in the crypto space for many years, I've seen many large transactions, but it’s always worth pondering when big players buy high and end up trapped—on-chain data never lies. The paper losses are right there, what does that tell us? Short-term pressure on ZEC is a certainty, and market sentiment is indeed shifting. Plus, with the recent tight signals from the Federal Reserve and increased volatility across the entire crypto sector, this move doesn’t seem like a carefully planned strategy; it looks more like chasing the high and getting caught.

I’ve always emphasized that data is king. From a trading perspective, large floating losses often signal a market reversal. Retail investors are easily attracted to follow the trend, but smart money usually adjusts their positions in the shadows early on. Remember last month, I pointed out that ZEC’s technical outlook had some hidden risks and that on-chain activity wasn’t very hot; now, the facts have confirmed that judgment. Blindly rushing higher is never rational, and the market needs time to digest this wave of selling pressure.

My clear conclusion is: in the coming weeks, the crypto market is likely to be volatile and weak. For coins like ZEC, caution is essential; only after this wave of selling truly subsides will there be a chance for a rebound. Don’t be too nervous—look at this from another angle, and it might be an opportunity to filter out better entries. A bear market requires patience, and a bull market is about speed—this has been my experience over the years. The most important thing is to rely on your own analysis; blindly following the crowd is too costly.