Zcash (ZEC) is trading near $1,300 on Thursday, extending a three-day recovery that has preserved roughly 15% in weekly gains. The privacy-focused cryptocurrency was hovering around $1,287 at the time of writing, supported by stronger exchange-traded fund (ETF) inflows and rising derivatives exposure.
ETF Inflows Surge
Grayscale's Zcash-focused ETF recorded net inflows of $15.18 million on Wednesday, according to SoSoValue data. That marks a substantial increase from Tuesday's $1.61 million and represents the strongest daily inflow in about a month, following three consecutive weeks of net withdrawals.
The rebound suggests improving demand through the fund, although two positive sessions do not yet confirm that the longer-running outflow trend has ended. Investors may be cautiously re-entering, but sustained inflows will be needed to signal a durable shift.
Futures Open Interest Climbs
Zcash futures open interest reached $2.89 billion, its highest level since September 29, according to CoinGlass figures. This compares with $2.25 billion on Monday, an increase of approximately $510 million.
Open interest measures the notional value of outstanding futures contracts, and its growth can reflect new positions, rising token prices, or a combination of both. The increase indicates expanding derivatives exposure, though it does not prove that retail traders alone are returning, nor does it establish whether newly opened positions are predominantly bullish or bearish.
Combined with the price recovery and ETF buying, the figures point to renewed market participation. However, additional leverage could amplify volatility if prices reverse.
Technical Outlook: Holding Above Key Averages
On the four-hour chart, ZEC remains above its 50-period Exponential Moving Average (EMA) at $1,210 and its 200-period EMA at $1,235. Trading above both averages supports the near-term recovery structure, although the shorter average remains below the longer one, indicating that the broader trend is still recovering.
Momentum indicators are constructive. The Relative Strength Index (RSI) stands near 61, indicating positive momentum without reaching the conventional overbought threshold of 70. The Moving Average Convergence Divergence (MACD) indicator also remains in positive territory, reinforcing the improving technical picture.
These readings favor the recovery but do not eliminate the possibility of consolidation or a pullback following the recent advance. The September 26 peak near $1,698 serves as a significant upside reference if the rally continues. Reaching that level would require a rally of over 30% from $1,387, making it an extended recovery target rather than an immediate threshold.
A sustained breakout above the peak would strengthen the bullish outlook, though whether it establishes a new annual high would depend on the full year's trading range. For now, continued buying and sustained support above the reclaimed moving averages would provide stronger evidence that Zcash can extend its gains.
Key Support Levels to Watch
On the downside, the $1,250 round-number level serves as the first nearby support reference. Holding above it would help preserve the latest breakout, while a sustained move beneath it could signal that the recovery is losing momentum.
Further down, the 200-period EMA at $1,235 and the 50-period EMA at $1,210 form a broader technical support zone. Zcash's ability to defend these levels, alongside continued ETF demand, will help determine whether the recent rebound develops into a more durable advance.
This article is for informational purposes only and does not constitute financial advice.
