Key facts
- Zcash (ZEC) is trading at $1,333.50, down 7.29% on Thursday.
- The cryptocurrency is approximately 21% below its recent peak of $1,698.00.
- ZEC had previously climbed about 253% from a base of $480.72.
- Grayscale's Zcash ETF (ZCSH) had $268 million in cumulative net inflows as of September 30.
- The ETF recorded a $30.25 million net outflow on September 30.
- Approximately $3.9 million in ZEC was moved from hack-linked addresses into Zcash's shielded pool.
Zcash (ZEC) experienced a significant price drop, trading at $1,333.50, down 7.29% on Thursday and approximately 21% below its late September peak of $1,698.00. This decline follows a substantial rally where the cryptocurrency climbed about 253% from a base of $480.72.
The broader market is not providing support, with Bitcoin's recent surge to $85,600 on Wednesday being quickly reversed. The 10-year Treasury yield closed at 5.29%, and market expectations for an October Federal Reserve rate hike have fallen below 50%.
Flows from Grayscale's Zcash ETF (ZCSH), launched on August 25, are a key factor. While the ETF had attracted $233 million in net inflows by mid-September, it recorded a $30.25 million net outflow on September 30, leaving cumulative net inflows at nearly $268 million. The fund also underwent a 3-for-1 share split.
Sentiment may also be affected by a recent hack at the Bitget exchange, where hackers stole approximately $387 million on September 24. While the direct impact of $3.9 million in ZEC moving from hack-linked addresses into Zcash's shielded pool is considered small, it does not aid the cryptocurrency's reputation.
Technical indicators suggest Zcash is in a correction rather than a collapse. The Relative Strength Index (RSI) is neutral at 50.2, and the Average Directional Index (ADX) at 52.0 indicates a strong trend, though it may lag price movements. The 50-day Exponential Moving Average (EMA) remains above the 200-day EMA, suggesting a bullish trend on paper, though a sustained drop could lead to convergence. A daily close below $1,233.00 could signal further downside, while reclaiming $1,410.72 might indicate a return to the prior rally.