The big dump of ZEC this time serves as a lesson for the Privacy Coin zone.

From $500 it fell all the way to $400, a speed that even seasoned investors couldn't react to. Even more exaggerated is the fact that someone directly shouted a target price of $30 – it sounds ridiculous, but the market sentiment has indeed collapsed.

Let's review the recent trends:

Shorting made a fortune. Opened a short at 500 and held it down to 400, with the funding rate still positive, it's simply a textbook-level trend trade. On the long side, it's disastrous; leveraged positions got liquidated, and spot prices were directly halved. Whether to cut losses or not became a soul-searching question.

The most magical thing is the market sentiment making a 180-degree turn. Last month, some people compared ZEC to "digital silver", but this month the tone has changed, and the topic of discussion has turned to "how to cut losses to minimize the damage". The myths of wealth creation and bankruptcy in the crypto world are always just a K-line away.

Let's say something unpleasant: the more you boast when it rises, the more it hurts when it falls. This is an iron rule of the market.

**Personal Opinion (For Reference Only):**

- The rebound may just be a trap to lure in more buyers. Whether the 300 level can hold needs to be observed, but don't expect a V-shaped reversal.
- Although 30 dollars is aggressive, the regulatory pressure on Privacy Coin and the shrinking market demand are real issues.
- Bottom fishing should be done cautiously. Although the term "zeroing out" is harsh, the survival environment for Privacy Coin zones has indeed become increasingly difficult.

In summary: Every rebound during a downtrend could be the starting point of the next drop.

How is your position? Did you take profits on your short position in time?

**(Risk Warning: A big dump may lead to a retaliatory rebound, and shorts must set stop-loss orders)**