Decoding Zcash’s pullback as Grayscale interest and spot buying grow

Grayscale is strengthening its bullish stance towards Zcash as institutional attention shifts increasingly towards blockchain privacy. Just recently, the asset manager mentioned that Zcash could continue extending its share of the blockchain privacy market.

The privacy narrative is now gaining another platform through Grayscale Head of Research Zach Pandl.

Reportedly, Zach is expected to present the “Macro Case for Zcash” at Singapore’s Digital Asset Yield Summit today, 6th October.

Pandl’s appearance is expected to bring Zcash’s privacy proposition before an audience focused increasingly on opportunities around institutional digital assets. This development also follows the expanding interest in those cryptocurrencies that mainly focus on privacy as investors reassess their role within the wider market.

Notably, that attention arrives as ZEC large holders simultaneously move substantial supply away from trading platforms.

Fresh accumulation validates ZEC demand

According to Lookonchain on an X post, a new wallet withdrew 7,166 ZEC valued roughly  $9.67 million from Coinbase within 12 hours. Moving such a considerable position from Coinbase decreased the amount of ZEC tokens immediately available on the exchange.

Besides, the spot market activity additionally favoured the underlying demand outlook despite ZEC’s ongoing price correction.

In particular, the Spot Taker CVD indicator remained taker-buy dominant at press time, suggesting aggressive buyers continued outweighing sellers across the spot markets. The combination therefore placed the Coinbase withdrawal within a broader pattern of continued spot demand.

The bulls were, however, yet to translate that demand into a sustained price recovery.

Liquidation liquidity builds above Zcash

ZEC’s Binance Liquidation Heatmap shows a significant concentration of leveraged positions sitting above its prevailing market price.

Notably, the strongest nearby liquidity cluster can be seen around the $1,370 – $1,380 region, introducing a potential liquidity target in case of a price recovery.

Besides, further liquidation levels extended above this region, although their concentration became more dispersed towards $1,400. This positioning created considerable overhead liquidity as ZEC price attempted to stabilize following its retracement from recent highs.

A rebound from the developing key support could bring the $1,370–$1,380 cluster zone into focus first. ZEC price moving towards this area could trigger short liquidations and potentially validate an initial recovery attempt.

ZEC retraces after completing Elliott impulse wave

Zcash retraced after completing the Elliott impulse wave earlier predicted by AMBCrypto.

The earlier setup projected a fifth-wave advance towards the $1,500 price level after ZEC established wave-four support around the $1,054.72 area.

Eventually, Zcash [ZEC] price exceeded that target, reaching the $1,600–$1,700 region before a correction developed.

Subsequently, ZEC pulled back towards the $1,295 area, where the bulls attempted to establish near-term support.

The RSI indicator also cooled to 49.65 following the correction, reflecting weaker buying pressure after the previous overbought conditions.

A sustained hold of the $1,295 level could support a relief move toward the dense liquidation cluster around the $1,370–$1,380 region.

Losing $1,295 support however could likely extend the retracement towards the order block immediately below, which stretches towards $1,100, providing a deeper structural support.

A reaction from this order block could therefore introduce another base for buyers in case the $1,295 support fails.

Final Summary

• Grayscale’s growing Zcash focus coincides with a fresh $9.67 million Coinbase withdrawal.

• ZEC finding support at $1,295 could open a recovery path toward the overhead liquidity.