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Zcash Attempts Recovery Near $1,264 as Grayscale Outflows Continue

MixedMedium impact
ZECUSD$1,163.81 −4.45%

Zcash (ZEC) attempted a short-term rebound, rising 2% on Wednesday following a 4% gain on Tuesday to recover ground lost in earlier sell-offs. The cryptocurrency reached near $1,264 to test its moving-average resistance zone, though recent trading shows the token pulling back to $1,159, down 4.81% for the day.

Investment product demand remains subdued as redemptions from Grayscale's Zcash-focused fund persist. The fund logged $5.19 million in net outflows on Tuesday after $1.66 million in withdrawals on Monday and $30.72 million the previous week. Total weekly redemptions have reached $6.85 million over two sessions, indicating that institutional product flows have not yet mirrored spot price gains.

Traders are watching key technical levels to see if Zcash can build upward momentum. Reclaiming the Monday peak of $1,320 could open the path toward $1,422 resistance. Conversely, if selling pressure intensifies, support lies around $1,115, followed by $1,050 and the psychological threshold at $1,000.

Key points

  • Zcash (ZEC) gained 2% on Wednesday and 4% on Tuesday before retreating to around $1,159, down 4.81% on the day.
  • Grayscale's Zcash fund experienced $5.19 million in net outflows on Tuesday and $1.66 million on Monday.
  • Recent redemptions follow $30.72 million in withdrawals recorded across the prior week.
  • A break above the $1,320 resistance level is needed to target $1,422, while downside support sits near $1,115 and $1,050.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why is Zcash facing price pressure despite recent gains?

Persistent outflows from Grayscale's Zcash fund continue to weigh on investor sentiment, with $6.85 million in net redemptions logged across Monday and Tuesday following $30.72 million in outflows the prior week.

What key price levels should Zcash traders watch?

On the upside, Zcash needs to clear resistance at $1,320 to potentially test $1,422. On the downside, critical support levels are located near $1,115, $1,050, and $1,000.

How much money left the Grayscale Zcash fund recently?

The fund recorded $5.19 million in net redemptions on Tuesday, $1.66 million on Monday, and over $30.72 million in the previous week.