What next for Zcash after ZEC’s 15% fall overshadows Grayscale’s $1M promise?
Zcash has faced intense selling pressure over the past week.
On Tuesday, 10th November, digital-asset-focused investment and asset management platform Grayscale announced the launch of Zcash [ZEC] Invest. It also committed $1 million to support the Zcash ecosystem.
Zcash Invest is a platform to educate investors and advisors about the ecosystem and the Zcash ETF. Funding for these initiatives will come entirely from the sponsor fee of the ETF, ZCSH, for up to its first year as an exchange-traded product.
The asset manager has also awarded $100,000 each to four groups. These include the Zcash Foundation Group, policy group Pretty Good Policy for ZCash, Shielded Labs, and Project Tachyon, the project aimed at scaling shielded transactions.
One of the biggest short-term crypto losers
At the time of writing, Zcash had fallen by 15.25% in the last 24 hours. As Bitcoin [BTC] maintained its descent below $74K, it kept the market-wide sentiment in fearful territory.
The leading privacy token was already facing high selling pressure, which was likely part of a higher timeframe corrective move. Even so, the short-term losses resulted in low speculative demand as Open Interest fell by 13.4% in 24 hours.
The weekly chart had a bullish swing structure, but a bearish internal one. The local lows around $1,050 appeared to have been ceded. Technically, the weekly candle has not closed yet, which could be confirmation too.
Nevertheless, ZEC’s descent to $945 was part of a correction that could extend to $635 in the coming months.
The latter level was the mid-point of another imbalance further south, just above the 78.6% retracement level.
Watch out for a bounce back above $1,100
The $1,049 and $1,368 levels were the anchor points for the previous swing structure of Zcash on the 4-hour chart. The swing low has been broken since, signaling a bearish trend shift.
A sustained downtrend below $900 would mean buyers were very weak, and a sizeable bounce might not come before further drawdown towards $635.
On the other hand, if the $945-demand zone is defended, at least for now, a bounce to $1,050 and $1,130 would become more likely. In such a scenario, swing traders can wait for such a bounce to sell.
Final Summary
- Grayscale committed $1 million to non-profits and initiatives that support the Zcash ecosystem, and also launched ZCash Invest.
- Zcash has faced intense selling pressure over the past week, ceding a key local level at $1,030.
