ZEC Dips 3% as Largest Short Positions Cash Out

On February 2, 2026, Zcash (ZEC) fell by 3.13% in the past 24 hours to $297.31, marking a 20.14% drop over the previous seven days and a 42.16% decline since the same time last year. The ongoing price deterioration coincided with major on-chain activity involving large ZEC short positions, highlighting the bearish sentiment surrounding the asset.

One of the most significant developments involved the "ZEC Largest Short" address, which has been aggressively taking profits on its ETH short position. Between February 1 and February 2, the position was reduced by approximately $40 million, shrinking from a peak of $57 million to just $9.5 million. This represents an 80% reduction in the ETH short exposure, with the remaining position showing an unrealized profit of $4.2 million and an average entry price of $3,235. In total, the address has collected $15.5 million in earnings during the current week.

The same address is also known for its substantial short exposure in ZEC, having initiated the position at a price of $184. It briefly faced an unrealized loss of $21 million but has since turned profitable. The active profit-taking across multiple assets—including ETH, ZEC, and now XMR—demonstrates a strategic shift toward realizing gains rather than maintaining long-term exposure.

In another notable move, the "ZEC Largest Short" address has opened a new short position in Monero (XMR). The short involves 2,500.00 XMR, valued at approximately $1,000,900, with an entry price of $708.78. The current market price of XMR at $400.37 places the position in a floating profit, with a liquidation price of $10,633.86. This move further underscores the aggressive bearish positioning by key market participants.

Taken together, these on-chain activities reinforce the downward pressure on ZEC and reflect a broader trend of profit realization in short positions across multiple digital assets. While no formal analyst forecasts are presented in the data, the actions of large holders suggest continued caution and a preference for liquidity over long-term exposure.