Zcash Price Forecast: ZEC loses steam as ETF selling weighs on recovery
- Zcash edges higher on Monday, following two previous days of losses and extending a consolidation range.
- ZEC ETFs recorded $13 million in outflows last week, after a $17 million inflow the prior week, suggesting mixed investor sentiment.
- The technical outlook for Zcash is mixed as the price remains trapped in a consolidation range between $1,112 and $1,340.
Zcash (ZEC) attracts some buyers on Monday, edging higher after two straight days of losses. The privacy coin saw $13 million in total outflows from institutional investors, while its retail appeal remains mixed. The technical outlook for Zcash suggests it is losing steam as the price continues to consolidate between $1,112 and $1,340.
NU7 release fails to lift ZEC as ETF outflows persist
Zcash’s Network Upgrade 7 (NU7) went live on its mainnet on Friday, reducing block confirmation time from 75 seconds to 25 seconds. However, the upgrade fails to attract buyers, with the price capped below the $1,340 barrier on Friday, leading to two consecutive days of retreat.
In hindsight, the institutional aversion, with $13 million in outflows last week, weighs on the upgrade. Persistent withdrawals from ZEC-focused Exchange-Traded Funds (ETFs) could deepen downside risk.
On the retail side, ZEC futures Open Interest (OI) is down 2% over the last 24 hours to $2.68 billion, indicating an unwinding of active contracts while the funding rate rises to 0.0272%, suggesting that traders are rebuilding long-side positions in hopes of a potential rebound.
Technical outlook: Will Zcash regain bullish momentum?
Zcash trades at $1,240 at press time on Monday, testing the 50-day Exponential Moving Average (EMA) at $1,219, which sits well above the longer-term 200-day EMA at $876, which together hint at a supportive near-term structure.
The Moving Average Convergence Divergence (MACD) and signal line converge near the zero line, while the Relative Strength Index (RSI) hovers just below the 50 level, suggesting a steady, neutral momentum.
To reinstate a bullish trend, Zcash must reclaim the $1,340 barrier set by the October high, which could pave the path toward the September 26 high of $1,698.
On the downside, immediate support is seen at the 50-day EMA around $1,219, with a deeper structural floor at the October 8 low of $1,112 if selling pressure accelerates.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Author
Vishal Dixit
FXStreet
Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.
