Zcash traded above $1,320 on Monday, preserving the previous day’s 4% rally as its recovery extended over three days.
The rebound comes despite continued withdrawals from Grayscale’s Zcash-focused exchange-traded fund. Meanwhile, nearby technical resistance leaves ZEC facing a test of whether improving momentum can translate into further gains.
Zcash ETF withdrawals slow but remain substantial
Grayscale’s ZCSH recorded $30.72 million in net outflows last week, according to SoSoValue.
That was lower than the previous week’s $93.56 million, bringing combined withdrawals over the two weeks to $124.28 million.
The slowdown suggests redemption pressure has eased, but persistent negative flows indicate that demand through the fund remains weak.
The withdrawals followed last month’s 3-for-1 share split. However, their timing alone does not establish that the split caused investors to redeem their holdings.
On the four-hour chart, Zcash is trading around a closely grouped pair of exponential moving averages.
The 50-period EMA stands near $1,279, while the 200-period EMA is around $1,274. With ZEC quoted above $1,320, the price is now above the cluster.
The declining 50-period EMA is approaching a crossover beneath the 200-period EMA. Such a crossover would reinforce the cautious technical outlook, although it has not yet been confirmed.
The bulls have also cleared the additional resistance at $1,296, the September 9 high, and are likely to turn this region into support.
Momentum indicators have strengthened during the rebound. The Relative Strength Index is near 51, above its neutral midpoint, suggesting buyers have gained some traction.
The Moving Average Convergence Divergence indicator is also rising alongside its signal line, supporting a more constructive short-term picture.
These readings suggest the earlier corrective pressure is easing. Nevertheless, ZEC still needs a sustained move through nearby resistance to strengthen the case for a continued advance.
Zcash technical outlook: $1,050 downside risk versus $1,422 recovery target
A sustained breakout above the moving-average cluster and $1,296 resistance would weaken the bearish scenario and bring $1,422 into view. That level corresponds to the September 18 low.
Conversely, rejection around the current resistance zone could interrupt the recovery and renew selling pressure.
The downside reference is $1,050, marked by the September 4 high. A move there would represent a decline of roughly 18% from $1,278.
For now, improving momentum supports the rebound, while continued ETF withdrawals and the nearby resistance cluster leave its durability uncertain.
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