Zcash Price Forecast: ZEC Gains 8% as ETF Outflows Exceed $5.19 Million

Zcash (ZEC) extended its recovery on Wednesday, October 14, rising 4% after a similar gain in the previous session and recovering part of Monday’s 8% decline. However, persistent withdrawals from Grayscale’s Zcash-focused exchange-traded fund (ETF) are raising questions about investor demand. The ZCSH fund recorded $5.19 million in daily outflows on Tuesday, while technical indicators showed improving short-term momentum. ZEC’s next move depends on whether buyers can overcome nearby resistance or renewed selling pushes the privacy-focused cryptocurrency toward lower support levels.

Grayscale ZCSH ETF Faces Heavy Outflows

Grayscale’s ZCSH fund has experienced sustained selling pressure since late September, around the time of its three-for-one share split on September 30. According to SoSoValue data, the fund recorded $5.19 million in outflows on Tuesday, following $1.66 million on Monday. The fund also experienced $30.72 million in outflows during the previous week.

These withdrawals indicate that investors have been redeeming ETF shares, although daily outflows alone do not establish the reasons behind their decisions or confirm an equivalent amount of direct selling in ZEC.

The figures also need to be considered alongside the fund’s longer-term flows. A single period of withdrawals does not necessarily mean institutional interest has disappeared, but continued redemptions could weaken sentiment while the token attempts to recover.

ZEC Technical Analysis: Momentum Improves

ZEC traded near $1,264 in the supplied market report on Wednesday, recovering from Tuesday’s low of $1,123. On the four-hour chart, the price was testing the declining 50-period and 200-period exponential moving averages (EMAs) near $1,261 and $1,269, respectively.

These moving averages represent average prices over different periods, with greater weight given to recent prices. Their proximity to the current market price creates an immediate test for buyers.

The Relative Strength Index (RSI) stood at 54, above its neutral midpoint of 50, indicating improving momentum. The Moving Average Convergence Divergence (MACD) line also edged above its signal line, suggesting a tentative bullish crossover.

Nevertheless, the recovery has not yet confirmed a broader trend reversal. Traders are watching several important levels:

• $1,261–$1,269: Initial resistance around the two four-hour EMAs.
• $1,320: Monday’s peak and a key level for confirming stronger recovery.
• $1,422: A potential upside target near the September 18 low identified in the supplied analysis.
• $1,115: Immediate downside support, followed by $1,050 and the psychological $1,000 threshold.

Zcash Price Outlook: Key Levels Ahead

A sustained move above $1,269 could strengthen the recovery and allow ZEC to challenge $1,320. A convincing break above Monday’s peak would provide stronger evidence that buyers are regaining control, potentially opening the way toward $1,422.

Conversely, failure to clear the moving averages could leave the token vulnerable to another decline. A break below $1,115 would expose the $1,050 area, while a deeper sell-off could bring $1,000 into focus.

Conclusion:

Zcash is showing signs of recovering momentum after a sharp correction, but ETF outflows remain a concern. Buyers need to reclaim nearby resistance and break above $1,320 to strengthen the bullish case. Until then, the outlook remains mixed, with support near $1,115 providing an important test for the recovery.