Zcash Price Forecast: ZEC flashes bearish technical signals as upside momentum eases
- Zcash edges down on Monday, extending the 4% loss from the previous day.
- Institutional demand holds firm with over $35 million in ETF inflows last week.
- Zcash loses retail demand as ZEC futures Open Interest shrinks by 10% in 24 hours.
Zcash (ZEC) price hovers below $1,550 on Monday, extending losses after a 4% decline the previous day. Institutional interest in the privacy coin holds firm, recording over $35 million in inflows last week, while retail speculation takes a hit, with ZEC futures Open Interest down around 10% in 24 hours. The technical outlook for Zcash indicates a near-term correction, with a support cluster around $1,420.
ETF inflows show long-term confidence as retail remains short-sighted
Grayscale’s Zcash-focused Exchange-Traded Fund (ETF), ticker ZCSH, recorded $35.17 million in inflows last week, bringing the monthly total to $284.29 million so far. This marks the fifth consecutive weekly inflow, projecting firm confidence in the privacy coin’s long-term growth story. In addition, Grayscale’s ZCSH fund will execute a 3-for-1 forward share split on Monday, as the demand remains high.
On the other hand, retail demand weakens for Zcash in the short term. CoinGlass data shows the ZEC futures Open Interest (OI) is down 10% over the last 24 hours to $3.11 billion, suggesting a mild correction in positional buildup. The liquidation data shows $6.74 million in long liquidations outpaced $1.99 million in short liquidations, suggesting a wipeout of bullish positions and sell-side dominance.
Still, the ZEC OI holds above the $3 billion mark, following its steady increase from $770.27 million on August 1.
Technical outlook: Zcash faces a temporary downside risk below $1,500
Zcash hovers around $1,540 at press time on Monday, with a nearly 3% intraday drop, following a 4% decline on Sunday from the $1,680 high. The privacy coin shows near-term weakness as price tests the 50-period Exponential Moving Average (EMA) at $1,529 on the four-hour chart, while the 100-period EMA near $1,421 and the 200-period EMA around $1,229 underpin the long-term uptrend.
Momentum has cooled, as the Relative Strength Index (RSI) is at 45 on the four-hour chart, slipping below the midline, while the Moving Average Convergence Divergence (MACD) crosses below its signal line, hinting at easing bullish pressure rather than an outright trend reversal.
A confirmed breakout below the 50-period EMA at $1,529 could target the 100-period EMA near $1,421 and the September 9 high at $1,296.
Looking up, a potential rebound from the 50- or 100-period EMAs around $1,529 and $1,421 must surpass the $1,680 swing high for a sustained upward trend, potentially targeting the $1,700 round figure.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
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.
