Key takeaways
- Zcash traded near $1,111 on Thursday, extending Wednesday’s roughly 6% decline.
- A sustained four-hour close below $1,115 could expose support at $1,050 and $1,000.
- ZEC needs to reclaim resistance between $1,242 and $1,264 to ease its near-term bearish outlook.
Zcash extends losses despite renewed ETF buying
Zcash continued to fall on Thursday as inflation concerns weighed on the broader cryptocurrency market, overshadowing a return to inflows into Grayscale’s Zcash-focused exchange-traded fund.
ZEC traded around $1,094 at the time of the report, extending the previous day’s roughly 6% loss. The decline brought the privacy coin below last week’s $1,115 low, although a sustained four-hour close beneath that level remained important for confirming a breakdown.
The latest selling extends a correction from Zcash’s late-September peak of $1,698. With momentum indicators still pointing lower, attention has shifted toward whether buyers can prevent a deeper retreat toward $1,000.
The US Consumer Price Index showed annual inflation of 3.7%, exceeding expectations of 3.6%, according to the supplied report.
The stronger reading increased concerns about persistent inflation and the possibility of further interest rate hikes, weakening appetite for cryptocurrencies.
Bitcoin’s vulnerability around $80,000 added to the cautious backdrop. Further weakness in the largest cryptocurrency could intensify selling across altcoins, including Zcash.
These macroeconomic pressures have limited the impact of improved demand through ZEC investment products, leaving the token under pressure despite Wednesday’s positive fund flows.
Grayscale’s ZCSH attracts $3.68 million
Grayscale’s Zcash-focused fund, ZCSH, recorded $3.68 million in inflows on Wednesday, according to SoSoValue data cited in the report.
The inflows ended two consecutive days of withdrawals, which followed two weeks of net outflows. The reversal offered an early indication of renewed demand through the product.
However, a single positive session does not establish a sustained recovery in investor appetite. Zcash’s continued spot-market decline suggests the buying was insufficient to overcome broader selling pressure.
Whether ZCSH can attract further inflows will help determine if Wednesday’s improvement develops into a more durable trend.
Zcash tests support below $1,115
Zcash’s four-hour chart retains a bearish bias, with the price trading well below two important moving averages.
The 50-period Exponential Moving Average stands near $1,242, while the 200-period EMA sits around $1,264. Together, they form an overhead resistance zone that could complicate recovery attempts.
Momentum indicators reinforce the weak outlook. The Moving Average Convergence Divergence indicator and its signal line remain below zero, accompanied by deeply negative histogram bars.
Meanwhile, the Relative Strength Index hovers around 34, indicating subdued momentum while remaining slightly above the conventional oversold threshold of 30.
The immediate technical question is whether ZEC confirms a sustained break below $1,115. A four-hour close beneath that level would strengthen the bearish case and increase the risk of further losses.
If the breakdown holds, the September 4 high near $1,050 becomes the next downside reference, followed by psychological support at $1,000.
A failure to defend $1,000 could expose the August 23 high around $888. That deeper target remains conditional on Zcash losing the intervening support levels.
For buyers, the first significant recovery hurdle is the 50-period EMA at $1,242. Beyond that, the 200-period EMA near $1,264 presents another barrier.
Reclaiming this resistance zone would help ease downside pressure. Until then, weak momentum and broader market uncertainty leave Zcash exposed to further selling, with the $1,115 level central to its immediate direction.
