Zcash has fallen 7.29% on the day to $1,333.50, putting it about 21% below its late-September peak of $1,698.00. The slide follows a $30.25 million outflow from Grayscale's Zcash ETF and a $3.9 million transfer of hack-linked funds into the network's shielded pool, though technical indicators still point to an underlying uptrend.
Zcash is having a rough Thursday. ZEC is trading at $1,333.50, down 7.29% on the day, with about three hours left before the daily candle closes.
That puts the privacy coin roughly 21% below the $1,698.00 peak it hit in late September. It also shows how far ZEC had run: the coin climbed about 253% from a $480.72 base to that high.
The wider market isn't offering a lifeline. Bitcoin spiked to $85,600 on Wednesday after softer-than-expected PCE inflation data, then quickly gave it back. The 10-year Treasury yield closed at 5.29%. Meanwhile, the odds of an October Federal rate hike have fallen from 70% to below 50%, according to CME FedWatch.
ETF flows turn negative
Grayscale launched its Zcash ETF, ticker ZCSH, on Aug. 25, and it had attracted $233 million in net inflows by mid-September. Yesterday, however, the fund recorded a $30.25 million net outflow, leaving cumulative net inflows at almost $268 million. Its 3-for-1 share split also took effect that morning.
Hack-linked funds add pressure
The Bitget hack is another factor weighing on sentiment. Hackers stole about $387 million from the exchange on Sept. 24, up from an initial $351.6 million estimate once transfers on the Zcash and Tron blockchains were counted. Bitget's CEO says the attack is consistent with North Korean hacker groups, though firm attribution is still pending.
On Wednesday, blockchain investigator ZachXBT flagged 2,746 ZEC, about $3.9 million, moving from hack-linked addresses into Zcash's shielded pool, where senders, receivers and amounts are hidden. The hack is not likely the trigger behind today's drop, and $3.9 million is relatively small, but it's not helping either.
What the chart says
Overall, Zcash is still strongly bullish, but its price movement over the last five days points toward a steep correction. The Relative Strength Index, or RSI, sits at 50.2, dead neutral, so ZEC is neither stretched nor washed out. The Average Directional Index, or ADX, reads 52.0; anything above 25 counts as a real trend, so a 52 is very strong, though it mostly reflects the vertical run.
The 50-day EMA is still above the 200-day, which keeps the trend structure bullish on paper. A daily close below $1,233.00 would put the golden zone in play, while a reclaim of $1,410.72 would put the run back on track.
In June, ZEC dropped from $635 to an intraday low of $309 when a critical vulnerability in its shielded pool was disclosed, then went on to climb past $1,600. A 21% drop after a 253% sprint isn't unusual.
Source: Decrypt
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