Zcash experienced a mild recovery on Monday, trading near $1,200 after a bearish weekend that saw the privacy-focused cryptocurrency struggle to regain bullish momentum. Despite renewed demand driven by increased inflows to its exchange-traded fund, Zcash remains down over 15% for October.
ETF inflows revive investor interest
Grayscale’s Zcash Trust reported four consecutive daily inflows last week, totaling $41.09 million based on data from SoSoValue. These inflows marked a notable turnaround after three weeks of consistent fund withdrawals, signalling renewed interest among institutional investors in accessing Zcash through a regulated vehicle.
While ETF flows improved the outlook for Zcash, they have yet to generate a sustained price rally. The coin’s market price is still facing downward pressure and has not mirrored the renewed investment appetite reflected in fund inflows.
The recent inflows also precede the upcoming Zcash Network Upgrade 7 (NU7), scheduled for November 5. This network update is set to reduce block confirmation times to 25 seconds and discontinue the legacy Sprout pool and its transactions, according to a statement posted by the Zcash team on X.
The planned network changes include shortening block confirmation times and decommissioning older transaction pools, positioning the upgrade as a potential catalyst for renewed ecosystem momentum, though its timing alone does not account for the recent surge in fund inflows.
Although the upgrade brings technical improvements, market analysts remain cautious, noting that technical factors and investor sentiment will likely determine whether inflows can translate into a more robust price recovery.
Technical hurdles persist for ZEC
Zcash continues to trade under key technical levels on the four-hour chart. The coin is positioned below its 50-period Exponential Moving Average (EMA) at $1,207 and its 200-period EMA at $1,231. These moving averages represent immediate barriers that buyers need to overcome to trigger a more convincing upward move.
Momentum indicators offer mixed signals. The Relative Strength Index is near 47, remaining just below the neutral 50 level, which suggests that buyers have yet to tip the balance in their favor. Meanwhile, the Moving Average Convergence Divergence indicator is slightly positive but lacks strong momentum, indicating that selling pressure may have eased without presenting a clear recovery signal.
Further resistance is seen near $1,268, while the main supply zone between $1,296 and $1,385 capped last week’s rebound, leaving it as a significant obstacle for any sustained advance. A break above this range would strengthen the case for a bullish reversal, with the September swing high near $1,698 emerging as a potential longer-term target if upward momentum resumes.
Technical analysis highlights that unless buyers reclaim the 50 and 200-period EMAs and break through the current supply zone, short-term rallies are vulnerable to renewed selling pressure.
On the downside, technical support is present at $1,117, coinciding with the September 4 high. Should bearish momentum persist, the psychological $1,000 level becomes the next key area to watch for potential stabilization.
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For now, renewed ETF inflows offer a positive demand signal for Zcash, but firm price confirmation above the key resistance levels will be crucial for bullish prospects to improve sustainably.
