Zcash maintained its upward momentum on Monday, trading above $1,320 following a 4% rally the previous day and marking its third consecutive session of gains. The recent rebound comes even as Grayscale’s Zcash-focused exchange-traded fund registered continued investor withdrawals, raising questions about the sustainability of this uptrend.
ETF outflows persist despite price recovery
Grayscale, a major digital asset management firm, operates ZCSH, an exchange-traded fund offering exposure to Zcash. Last week, ZCSH recorded net outflows of $30.72 million, according to data from SoSoValue. Although this figure marked a slowdown from the previous week’s $93.56 million outflow, total withdrawals over the two-week period reached $124.28 million.
This recent wave of outflows followed a three-for-one share split completed by the fund last month. While the timing of the redemptions coincided with the split, there is no direct evidence linking the two events. The ongoing withdrawals signal that investor demand for ZCSH remains subdued, despite the current upward movement in Zcash’s price.
Nevertheless, the reduction in selling pressure suggests that the worst of the redemptions may be easing, at least for now.
Mini dictionary: Grayscale is a leading digital asset management company offering cryptocurrency investment products tailored for institutional investors, including single-asset funds and diversified crypto index funds.
Key technical levels guide Zcash outlook
In recent sessions, Zcash traded above a closely packed cluster of exponential moving averages on the four-hour chart, with the 50-period EMA near $1,279 and the 200-period EMA just below at $1,274. With ZEC quoted north of $1,320, the price is currently above both moving averages, suggesting buyers have regained some control.
The 50-period EMA is drifting lower and nearing a crossover beneath the 200-period EMA, which, if completed, would reinforce a more cautious short-term technical view. However, this crossover has not yet occurred.
Recently, bulls pushed through resistance near $1,296, which previously marked the September 9 high. This area is likely to serve as support if the uptrend holds. Momentum indicators have strengthened alongside the rebound. The Relative Strength Index (RSI) sits near 51, slightly above the neutral midpoint, indicating some strengthening in buyer positioning. The Moving Average Convergence Divergence (MACD) is also rising, adding to the positive outlook in the near term.
| Indicator | Current Value | Reference Level |
|---|---|---|
| 50-period EMA | $1,279 | Short-term support/resistance |
| 200-period EMA | $1,274 | Medium-term support/resistance |
| Resistance | $1,296 | September 9 high |
| Potential Target | $1,422 | September 18 low |
| Downside Risk | $1,050 | September 4 high |
Zcash is trading above key short-term moving averages, with momentum indicators turning more positive. But persistent ETF outflows and nearby technical resistance levels continue to test the strength of the recovery.
Upside target at $1,422, with $1,050 as downside risk
A clear breakout above both the moving average cluster around $1,279 and the $1,296 resistance could shift the technical outlook, potentially setting up a move toward the $1,422 target, which corresponds to the September 18 low. Sustained buying interest would be needed to firmly establish the uptrend beyond these levels.
Should Zcash face renewed rejection around the current resistance, however, the risk of another decline toward the $1,050 level emerges. This price was last seen at the September 4 high and would represent a drop of about 18% from $1,278. Despite strengthening momentum, uncertainties tied to ETF redemptions and resistance levels continue to temper optimism around the rally’s longevity.
