ZEC plunges below $500: Traders struggle, accumulating losses worth millions

The ZCash cryptocurrency is facing a particularly difficult period, with the price dropping significantly below the psychological barrier of $500. According to current data, ZEC is trading at approximately $404.13, reflecting a 2.50% decrease in the last 24 hours.

A case that well illustrates market pressures involves a sizable trader, whose transactions have been monitored by on-chain analysts. The address in question, identified as 0xcf9, opened a long position with 10x leverage on November 22nd. Currently, this trader holds a significant exposure of 20.386 units of ZEC, worth approximately $9.79 million.

The trader’s situation has steadily worsened. The average entry price was set at $574.864, a level that now seems only a memory. Unrealized losses amount to around $1.925 million. However, the greatest damage occurred when ZEC hit its lowest point today: at that moment, latent losses exceeded $2.42 million, representing extreme financial pressure on the position.

Despite the substantial amount of accumulated losses, blockchain monitoring has not recorded any reduction in the size of the position. This suggests that the trader is maintaining their exposure, probably hoping for a price recovery, or that they may be in a situation of limited liquidity to reduce their commitment.

The situation remains fluid and serves as a warning about the risks associated with leveraged positions in a volatile market like cryptocurrencies.