Zcash (ZEC) has recently seen a contradictory trend: institutions have filed new ETF applications, while existing ETFs continue to face redemptions, sending prices lower.
Continued outflows send ZEC back to $1,241
ZEC is currently trading at around $1,241, down about 27% from its September 27 high of $1,698, and has been in a correction for more than ten consecutive days. Among comparable assets ranked in the top 10 by market capitalization, it has been the worst performer over the past 24 hours.
Outflows from Grayscale’s Zcash ETF (ZCSH) continue: $8.49 million flowed out on Wednesday alone, bringing this week’s total outflows to $12.05 million.
Redemptions were even higher last week, reaching $93.56 million. These redemptions came just after the fund’s 1-for-3 split. However, the available data doesn’t directly prove that the split caused investors to pull out; it only shows that market demand cooled noticeably during the adjustment period.
Interestingly, the Winklevoss-affiliated team has filed a new application for a Zcash ETF. It’s been 13 years since they filed for a Bitcoin ETF, showing that institutions are still expanding investment channels for these assets.
Key point: A filing is not the same as regulatory approval, let alone an immediate influx of capital. It’s unlikely to turn around the current selling pressure anytime soon.
Chart watch: Key support below and resistance above
From a technical perspective, ZEC has fallen below its 200-period moving average, which has shifted from support to short-term resistance at $1,287. The next key support zone is around $1,050. If the price continues to fall, there is still about 16% downside from current levels;
Further down, $1,000 is an important psychological level. For the market to recover, it needs to climb back above $1,287 and then break through the moving-average resistance near $1,355. Only then might bearish sentiment begin to ease.
As for the indicators, the MACD has crossed below its signal line, while the RSI is nearing oversold territory. This suggests that short-term downside momentum is still playing out, but there is no confirmation yet that the decline has bottomed out.
Final thoughts
This is a typical case of “long-term positive news breaking, while money flows out in the short term.” A new ETF filing is a long-term industry development, but right now the market is more focused on the selling pressure from continued redemptions.
Positive news doesn’t necessarily stop a short-term decline right away. The price levels mentioned here are for observing market zones only, not trade recommendations. Crypto assets are extremely volatile, so don’t make trading decisions based on news alone.
]What do you make of this contradictory market action—“ETF filings on one hand, money flowing out on the other”? Join the conversation in the comments.