Zcash climbed back above $1,300 on Wednesday, extending its recovery as fresh capital flowed into the Grayscale Zcash ETF and derivatives activity picked up. The privacy-focused cryptocurrency outperformed most major digital assets during the session, with the price now testing a key resistance zone near $1,373.
Data from SoSoValue shows that the ZCSH fund attracted $3.45 million in net inflows on Tuesday, following $1.96 million on Monday. That brings the week's total to $5.41 million and marks the sixth consecutive day of positive flows. Last week, the fund recorded $41.09 million in inflows, reflecting renewed institutional interest through the regulated product. While the figures indicate growing demand, they do not reveal the identity or investment rationale of individual buyers.
Open Interest Climbs as Short Sellers Face Pressure
Futures open interest for Zcash rose 10% over the past 24 hours to $2.88 billion, according to CoinGlass. The increase reflects a higher dollar value of outstanding contracts, which can result from both price appreciation and the opening of new positions. As such, the metric alone does not confirm fresh bullish positioning.
However, liquidation data shows that traders betting against ZEC were hit hard during the rally. Of the $8.22 million in total liquidations over the period, $7.58 million came from short positions. Forced buybacks of these positions can amplify upward price moves, adding momentum to the recovery.
The funding rate on perpetual futures stands at 0.0033%, indicating that long traders are paying shorts. This suggests a modest tilt toward bullish sentiment, though the rate remains low and does not signal excessive leverage.
Breakout Test at $1,373
Zcash is trading above its 50-day exponential moving average (EMA) near $1,203 and its 200-day EMA around $820, keeping the broader technical structure constructive. The immediate challenge is the $1,373 level, which represents the midpoint of the decline from the $1,698 swing high to the $1,049 low. That level has already acted as resistance earlier this month.
A confirmed breakout above $1,373 could open the door for a move toward the $1,698 high. Holding above the resistance after a breakout would provide stronger confirmation than a brief spike through it. Until then, the recovery remains vulnerable to renewed selling pressure near the barrier.
The daily Relative Strength Index (RSI) sits around 54, indicating positive momentum without reaching overbought conditions. The Moving Average Convergence Divergence (MACD) indicator is also strengthening, supporting the improving technical outlook.
Support Levels to Watch
If Zcash retreats, the 50-day EMA near $1,203 provides the first notable support. Below that, the previous low around $1,049 becomes the next reference point. A deeper decline would bring the 200-day EMA near $820 into focus.
For now, sustained ETF demand and improving momentum underpin the rebound, with $1,373 remaining the key hurdle for buyers. The market will be watching whether the price can hold above this level on a closing basis to confirm the next leg higher.
This article is for informational purposes only and does not constitute financial advice.
