Zcash (ZEC) extended its decline on Thursday, trading near $1,241, as persistent outflows from Grayscale's Zcash ETF and weakening technical momentum weighed on the privacy-focused cryptocurrency. The asset is the worst performer among the top 10 cryptocurrencies by market cap over the past 24 hours, sitting roughly 27% below its September 27 peak of $1,698.
The recent sell-off has lasted about ten days, with ZEC breaking below a key moving average, leaving lower support levels in focus. Grayscale's Zcash ETF (ZCSH) recorded $8.49 million in net outflows on Wednesday, according to SoSoValue data, bringing the week's total to $12.05 million. This follows $93.56 million in withdrawals last week, indicating a cumulative $105.61 million in outflows over the past two weeks.
These redemptions come after the fund's three-for-one share split, though the data does not establish a direct causal link. Nonetheless, continued outflows signal weaker demand for the fund during Zcash's correction.
In contrast, a new Zcash ETF filing associated with Cameron and Tyler Winklevoss provides a bullish signal for the asset. The proposal, filed 13 years after their initial Bitcoin ETF attempt in 2013, reflects ongoing efforts to broaden investment access to ZEC. However, a filing does not guarantee regulatory approval or immediate inflows, so its long-term significance remains uncertain alongside current selling pressure.
Technical Outlook: Support at $1,050
On the four-hour chart, Zcash has fallen below its 200-period exponential moving average (EMA) near $1,287, which now acts as initial resistance. The shorter 50-period EMA, around $1,355, is declining toward the longer average, and a crossover below the 200-period EMA would form a death cross, adding another bearish signal, though it does not guarantee further losses.
Momentum indicators also favor caution. The MACD has crossed below its signal line, while the Relative Strength Index (RSI) sits near 33, approaching oversold territory. These readings show sustained downside pressure without clear confirmation of a base forming.
If ZEC remains below $1,287 and selling continues, the next significant support level is $1,050, corresponding to the September 4 high. A move from $1,246 to $1,050 would represent a further decline of approximately 16%. Below that, the psychological $1,000 threshold comes into focus, with horizontal support at $888 (August 23 high) as a potential target.
For a recovery, Zcash first needs to reclaim $1,287, followed by the 50-period EMA near $1,355. Moving above both would ease the immediate bearish pressure. Until then, persistent ETF withdrawals and weak momentum leave ZEC vulnerable to an extension of its correction.
This article is for informational purposes only and does not constitute financial advice.
