Zcash (ZEC) is experiencing a steady recovery, trading above $1,300 on Wednesday and getting close to a significant resistance level at $1,373. Grayscale’s Exchange-Traded Fund (ETF) focused on ZEC has been seeing continuous buying, recording inflows for six consecutive days, with over $3 million added on Tuesday alone. Additionally, Zcash derivatives data indicates a preference for buying among traders, as Open Interest has risen by 16% in the last 24 hours, fueled by high short liquidations.
For Zcash to maintain its upward trajectory, it needs to break past the $1,373 resistance, which would help it aim for its previous swing high of $1,698.
Growing ETF Interest and Open Interest Potentially Boosts Zcash
Zcash is showing renewed interest from both institutional and retail investors, bolstering its chances for recovery in the near term. According to SoSoValue, Grayscale’s ZEC ETF (ZCSH) attracted $3.45 million on Tuesday, a substantial increase from $1.96 million the day before. This brings the total inflows for the week to $5.41 million so far, continuing from last week’s impressive $41.09 million and marking six days of consistent net inflows.
On the retail front, CoinGlass reports that ZEC futures Open Interest has surged by 16% over the last 24 hours, reaching $2.91 billion. This increase suggests a rise in the total value of active positions, typically driven by either a surge in spot prices or a buildup in positions.
In total, liquidations have reached $8.11 million during this period, with short liquidations leading at $7.58 million. This scenario indicates a bias toward buying, supported further by a positive funding rate of 0.0037%.
Technical Analysis: Is Zcash Poised for a Bounce Above $1,600?
As of Wednesday, Zcash is trading over $1,300, maintaining a bullish outlook above the 50- and 200-day Exponential Moving Averages (EMAs) at $1,203 and $820, respectively. These trends facilitate its overall upward movement.
The price is nearing the 50% retracement level of the recent drop from $1,698 to $1,049, positioned at $1,373, which has previously capped upward movement earlier this month. A confirmed breakout at this point could lead towards the swing high of $1,698.
Market momentum appears favorable, as the Relative Strength Index (RSI) is around 55, showing positive yet not exaggerated buying pressure, while the Moving Average Convergence Divergence (MACD) indicates strengthening momentum, suggesting sustained interest for upside movement.
In terms of support, immediate levels can be found at the 50-day EMA around $1,203 and the Fibonacci level at $1,049, while deeper dips could bring the 200-day EMA at $820 into consideration.
