Zcash (ZEC) fell 13% on Thursday as the privacy-focused cryptocurrency extended its recent losses. The token dropped from an intraday high of about $1,337 to around $1,133, according to data from CoinGecko as of October 8 (7:05 p.m. UTC). The fall pushed Zcash’s market value down to about $19.26 billion, while its 24-hour trading volume reached $1.286 billion.
Data from CoinGecko also showed that the decline added to a wider drop that has taken place over the past few weeks. ZEC is down 18% over the last seven days and 25.5% over two weeks.
The pressure is also visible in the derivatives market, where traders use contracts to bet on the future price of an asset. According to data from Coinglass as of 7:05 p.m. UTC, Zcash’s open interest fell 11.81% in 24 hours to about $2.43 billion. However, futures trading volume jumped 67.15% to $9.75 billion.
Grayscale Zcash ETF sees more outflows
The decline has also come as money continues to leave Grayscale’s Zcash ETF, known as ZCSH.
According to data from SoSoValue as of October 8 (7:05 p.m. UTC), the fund recorded $8.49 million in net outflows on Wednesday, bringing its outflows for the week to $12.05 million, after investors withdrew $93.56 million from the fund the previous week.
These withdrawals came after the fund carried out a three-for-one share split. However, the available data does not show that the share split caused investors to withdraw money from the fund.
Zcash recovered earlier this week
Meanwhile, the token had some strong sessions during the week. On October 6, The Crypto Times reported that ZEC traded at around $1,366 after rising 3.5% in 24 hours. This came after Zcash’s Network Upgrade 7, or NU7, went live on its public testnet on October 4, two days earlier than initially expected.
NU7 is the next planned major upgrade to the Zcash network. Its mainnet activation is targeted for November 5, while a go-or-no-go decision is scheduled for October 20.
Winklevoss files for Zcash ETF
Another Zcash development came on October 6. Winklevoss Asset Services, a company owned by Cameron and Tyler Winklevoss, filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed Zcash ETF. The proposed fund would hold ZEC and is expected to seek a Nasdaq listing under the ticker WINK.
The filing does not mean the ETF has been approved or launched. It also does not confirm that new money has entered Zcash through the proposed fund. Instead, the filing shows that another investment product linked to ZEC is being proposed.
Technical levels remain under pressure
Meanwhile, Zcash’s price has weakened on the charts. ZEC has fallen below its four-hour 200-period exponential moving average near $1,282.38. The level is now being watched as resistance. The 50-period EMA is around $1,332, while the Relative Strength Index (RSI) nears 41.75, showing that selling pressure has remained strong, according to the TradingView chart as of October 8 (7:05 p.m. UTC).
According to the price action on TradingView as at 7:05 p.m. UTC, if ZEC stays below $1,287, the next major support level mentioned in the supplied data is around $1,050. A move below that level could bring $1,000 and then $888 into focus. For the price to recover, ZEC would first need to move back above $1,287 and then reclaim the $1,355 area.
Crypto trader Haris (@Crypto__Haris) also pointed to the recent loss of momentum. In a post on X, he said, “ZEC is dumping as fast as it pumped.”
He added that Zcash had lost an important price area between $1,240 and $1,260. According to Haris, if ZEC fails to recover that area, he expects the price to move toward $1,020 first and then $800. He also said his short trade was already more than $15,000 in profit.
Those price targets are the trader’s own expectations and are not confirmed market levels.
Also Read: Algorand Price Jumps 20% Amid Quantum Security Debate
