A $1 million ad blitz, but $ZEC 's ETF is still seeing net outflows
Trading volume has stayed at normal levels, so selling pressure has never really cleared. No matter how steep the drop, if volume doesn't pick up, sellers are simply exiting in batches.
Money is still flowing out because there isn't enough demand to absorb it. Buyers haven't stepped in, so prices can only keep moving lower to find people willing to buy.
The current price is about 16% below the average purchase price over the past 30 days. On average, everyone who entered the market this month is sitting on a loss. Those unrealized losses will turn into sell orders at every level above the current price during a rebound.
That's why the average cost acts more like resistance in a weak market. When the price bounces back toward that level, those waiting to break even will be the first to sell. With volume still at normal levels, the rebound won't get far.
Grayscale advertised its ZEC ETF in The Wall Street Journal and pledged $1 million, but ETFs continued to see net outflows over the same period, while the token and ETF both fell 12%.
More promotion while money is pulling out tells the same story as trading volume.
Derivatives positions are also being cut: open interest fell 11% in 24 hours and 11.2% over seven days. Sellers have a slight edge in aggressive trading. Positions are being closed, so the decline isn't precipitous, but the price never fully recovers when it rebounds.
I think the price will test the 992.46 low from the past 30 days again. If volume doesn't pick up, any interim rebound will just be a move back toward the cost zone from below. The direction hasn't changed.
#zec
Trading volume has stayed at normal levels, so selling pressure has never really cleared. No matter how steep the drop, if volume doesn't pick up, sellers are simply exiting in batches.
Money is still flowing out because there isn't enough demand to absorb it. Buyers haven't stepped in, so prices can only keep moving lower to find people willing to buy.
The current price is about 16% below the average purchase price over the past 30 days. On average, everyone who entered the market this month is sitting on a loss. Those unrealized losses will turn into sell orders at every level above the current price during a rebound.
That's why the average cost acts more like resistance in a weak market. When the price bounces back toward that level, those waiting to break even will be the first to sell. With volume still at normal levels, the rebound won't get far.
Grayscale advertised its ZEC ETF in The Wall Street Journal and pledged $1 million, but ETFs continued to see net outflows over the same period, while the token and ETF both fell 12%.
More promotion while money is pulling out tells the same story as trading volume.
Derivatives positions are also being cut: open interest fell 11% in 24 hours and 11.2% over seven days. Sellers have a slight edge in aggressive trading. Positions are being closed, so the decline isn't precipitous, but the price never fully recovers when it rebounds.
I think the price will test the 992.46 low from the past 30 days again. If volume doesn't pick up, any interim rebound will just be a move back toward the cost zone from below. The direction hasn't changed.
#zec