A Whale Adds 10x Long Position of 42,498 ZEC, Total Long Position Now Worth $259 Million

A whale has increased its long position in Zcash (ZEC) by adding a 10x leveraged stake of 42,498 ZEC. This brings the total value of the long position to $259 million as of January 11, 2026. The movement follows broader volatility in the ZEC market, driven by leadership disputes within the Electric Coin Company (ECC) and its governing body, Bootstrap.

Zcash dropped nearly 14% in a single trading day, marking one of its largest intraday losses since December 1. The price decline is attributed to the resignation of the ECC development team, who reportedly left after constructive discharge from ZCAM due to governance misalignment with Bootstrap board members according to reports.

The ECC team has indicated it is forming a new company to continue its mission of developing privacy-focused cryptocurrency. According to Josh Swihart, CEO of ECC, the move was necessary to protect the team's work from potential governance issues as stated. Bootstrap responded by stating the issue involved nonprofit governance and the need to ensure compliance with regulatory mandates according to their statement.

A separate whale panic-closed a ZEC long position held for two months, incurring a $4.9 million loss. The move was reportedly driven by panic following the ECC team's resignation and subsequent ZEC price drop. Soon after, the whale reopened a smaller long position using 10x leverage according to trading data.

Meanwhile, a known trader, referred to as "Brother Ma Ji," also capitalized on ZEC volatility by opening and closing a 10x leveraged long position in just one hour, earning a $2,544 profit as reported.

What Is Driving ZEC Volatility?

The ECC team's resignation has raised concerns about Zcash's long-term governance and development. According to Swihart, the ECC team's departure was a result of employment terms that made it impossible to perform their duties effectively according to CEO statements.

The resignation also triggered a broader governance debate. Bootstrap emphasized its role as a public-benefit nonprofit and highlighted the need to explore external investment opportunities while ensuring compliance with nonprofit laws as stated.

The Zcash price dropped to an intraday low of $381 on January 8, bouncing back slightly as it trades near the $400 level. The price remains below key moving averages, with the 50-day EMA at $452 and the 100-day EMA at $389 acting as resistance and support levels, respectively according to technical analysis.

What Do Analysts Say About ZEC's Outlook?

Technical indicators suggest a bearish outlook for ZEC. The Relative Strength Index (RSI) is at 39, indicating increasing bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also slopes downward toward the mean line, reinforcing the bearish trend according to technical analysis.

However, analysts note that a rebound could occur if investors buy the dip after the dust settles on the governance dispute. A close above the 50-day EMA at $469 would be seen as a confirmation of a short-term uptrend according to market analysis.

The broader crypto market remains in a risk-off phase, with Bitcoin and Ethereum ETFs experiencing outflows. This sentiment extends to ZEC, where the market continues to adjust to governance uncertainty as reported.

Whale activity appears to be a double-edged sword. While large long positions can drive demand, panic-closing positions or profit-taking can amplify volatility. The recent $259 million long position is a bullish signal, but it remains to be seen whether it will be enough to counteract the broader market sell-off according to market data.

What Are the Implications for Investors?

Investors should closely monitor the Zcash governance issue and its impact on the project's roadmap. The resignation of the core team raises questions about the continuity of Zcash development and the potential for external investment opportunities as noted by analysts.

From a trading perspective, ZEC remains vulnerable to further downside if the bearish momentum continues. Traders may want to watch for a breakdown below the $389 support level, which could trigger further selling according to technical indicators.

Institutional activity also appears to be shifting toward altcoins like XRP and Solana, where options strategies are being increasingly adopted according to financial reports. Zcash's volatility and governance challenges may make it a less attractive target for structured trading strategies compared to more liquid alternatives.

The current situation highlights the fragility of smaller crypto projects in the face of governance instability. While large whales can influence short-term price action, long-term fundamentals—such as project governance, team continuity, and regulatory compliance—are increasingly shaping investor sentiment according to market analysis.

Investors considering Zcash should weigh the risks of governance uncertainty against potential price recoveries. Technical traders may find opportunities in volatility, but long-term holders may need to reassess their exposure in light of the latest developments as reported.

The Zcash market is now at a crossroads, with its price and governance both under pressure. The next few weeks will likely determine whether the market regains confidence in the project or shifts focus to more stable altcoin options according to market analysis.