Zcash showed signs of stabilization on Monday, edging higher after three straight weeks of declines knocked the privacy-focused digital asset down by around 30% from recent levels. ZEC traded near $1,165 following an 11% drop over the previous week, but overall market sentiment remained cautious amid persistent ETF outflows and declining participation in Zcash derivatives.
Grayscale ETF redemptions continue
Grayscale, the asset manager known for launching cryptocurrency investment products targeting institutional and accredited investors, registered $19.15 million in net outflows last week from its ZEC-focused exchange-traded fund. This followed two consecutive weeks of larger redemptions totaling $30.72 million and $93.56 million. Over the past three weeks, withdrawals have accumulated to approximately $143.43 million.
Although the latest outflow was smaller than prior weeks, the sustained negative flow suggests that redemptions through the ETF are still outpacing fresh inflows. Grayscale’s ZEC fund remains one of the primary vehicles for traditional investors to gain exposure to Zcash through regulated markets.
Grayscale’s ZEC fund saw $143.43 million in outflows over three weeks, reflecting ongoing investor caution and a preference for liquidity amid market volatility.
A return of consistent positive inflows would signal renewed demand for Zcash among investment funds, but momentum has yet to shift decisively in that direction.
| Week | Grayscale ZEC ETF Net Outflow | Cumulative Outflow |
|---|---|---|
| 3 weeks ago | $93.56 million | $93.56 million |
| 2 weeks ago | $30.72 million | $124.28 million |
| Last week | $19.15 million | $143.43 million |
Grayscale is a digital currency asset management firm offering large-scale access to cryptocurrencies through investment trusts and ETFs.
Declining derivatives activity
Futures market participation around Zcash has also waned. Data from analytics provider CoinGlass indicated a drop in ZEC futures open interest from $3.29 billion last month to $2.36 billion, a decline of about $930 million or roughly 30%.
Open interest tracks the notional value of outstanding futures contracts and a decline can signal lower trading activity or investor interest. However, falling prices themselves can also reduce the value of open positions, complicating the interpretation of the trend. The open interest figures, alongside ETF outflows, reinforce the overall picture of reduced market engagement with Zcash.
Mini dictionary: Open Interest – This term refers to the total notional value of all currently active (unsettled) contracts in the futures market for a given asset. A decrease in open interest often reflects reduced trading activity or market commitment.
ZEC technical resistance remains
The Zcash daily trading chart shows the digital asset struggling to break above several critical resistance points. The coin remains below its 50-period Exponential Moving Average (EMA) at $1,184, which forms the first significant technical barrier for any bullish move.
Above this, a longer-term descending trendline near $1,229 and the 200-period EMA at $1,240 provide additional resistance. Clearing these levels would be required to signal a potentially broader trend reversal.
Technical momentum remains weak. The Moving Average Convergence Divergence (MACD) indicator is positioned just above its signal line but remains in negative territory, suggesting the current bullish move is not yet convincing. The Relative Strength Index (RSI) sits below 50, indicating momentum is neutral to bearish rather than favoring buyers.
On the downside, structural support lies around $1,050, marked by the September 4 high, followed by the key $1,000 threshold. Failure to hold these levels could draw Zcash down toward $888, last marked as a local high on August 23.
For now, ZEC’s modest recovery requires a move above $1,184 and further resistance zones to signal a meaningful reduction in selling pressure.
