ZEC, on the verge of surpassing $510? The 'strong breath' of the derivatives market is gaining momentum.

• Technical resistance at $485 continues to drive upward momentum… $415 as a support line during corrections
• Open interest surpassing $950 million & long positions dominating… signals of new fund inflows
• Funding rate remains positive… indicating strong buying intent at institutional levels

The bullish momentum for ZEC(ZEC) is quite strong. ZEC, which has surged to $510.29 based on spot prices, has gained over 30% compared to last week, and is now oscillating around the $440 mark, aiming for a new high.

Technical perspective: Establishing an uptrend… $485 is the current test level

Looking at the chart, ZEC is already establishing a clear upward structure. Since breaking through the downtrend that started in November on December 5th, it has been forming consecutive bullish candles on the daily chart. The 19% increase on Monday, followed by upward momentum on Tuesday and Wednesday, confirms the ongoing bullish trend.

From a technical standpoint, the next resistance level is $485.18. There is a possibility of profit-taking at this level, but once this level is broken, the acceleration of the rally could become even more evident.

Supporting indicators also lean towards a ‘buy’ signal. The daily RSI has crossed above 50 into an upward phase, and the MACD is approaching a golden cross with the signal line. This indicates that the downward momentum is still active.

However, a correction due to short-term overextension is likely unavoidable. In this case, around $415 is expected to act as the first support level. Industry insiders say, “If $415 holds, it should be seen as a healthy pullback and an opportunity to re-enter.”

Market signals: Confirmation of new fund inflows, dominance of long positions

What truly indicates strength are derivatives market indicators. Notably, funding rates have turned positive(+) since Saturday, maintaining at 0.0059% as of Wednesday. This means traders holding long positions are paying interest to hold their positions, signaling high market confidence.

The surge in open interest(OI) is also significant. It increased from $711.1 million on December 3rd to recent levels of $950.487 million. As prices rose, the simultaneous increase in positions indicates new net long entries rather than just unwinding of existing positions.

The long/short ratio has reached 1.08, the highest in the past month. This means long positions, betting on price increases, overwhelmingly outnumber short positions, which bet on declines.

Opportunities and risks from a trader’s perspective

This rally is considered a ‘structural uptrend’ rather than a simple rebound because it is supported by new fund inflows in the derivatives market. Signals from institutional-level funds building long positions suggest sustained upward movement.

However, since spot prices have already risen over 40%, it’s prudent to consider buying near technical resistance levels or re-entering during corrections rather than forcing entries. Remember that if the $415 support level is broken, downside risks should not be overlooked.