Zcash jumps 6% in two days despite fresh Grayscale outflows: can ZEC break $1,320?

Zcash (ZEC) rose 2% Wednesday, extending Tuesday’s 4% advance and recovering much of the ground lost during Monday’s sell-off. The privacy-focused cryptocurrency traded around $1,264 as buyers challenged nearby technical resistance. However, persistent withdrawals from Grayscale’s Zcash-focused fund continue to weigh on the demand picture.

The recovery has improved short-term momentum, but ZEC still needs to clear its moving-average resistance zone and Monday’s peak to establish a stronger bullish outlook. Grayscale’s ZCSH records further redemptions Grayscale’s ZCSH fund posted $5. 19 million in net outflows Tuesday, according to SoSoValue data.

The withdrawals followed $1. 66 million on Monday and $30. 72 million across the previous week.

Together, the first two sessions of this week produced $6. 85 million in net redemptions. Selling pressure has persisted since late September, coinciding with the fund’s September 30 three-for-one share split.

The timing alone does not establish that the split caused the withdrawals. These figures show that the rebound in ZEC’s spot price has yet to coincide with renewed buying through the investment product. Continued redemptions remain a headwind as traders assess whether the recent gains can develop into a sustained recovery.

For the demand outlook to improve, a slowdown in redemptions or a return to net inflows would provide a more supportive signal alongside the strengthening price momentum. Zcash technical forecast: ZEC tests $1,261–$1,269 Moving-Average zone On the four-hour chart, ZEC has recovered from Tuesday’s low near $1,123 and is testing its declining 50-period and 200-period exponential moving averages. The averages sit at approximately $1,261 and $1,269.

At $1,264, ZEC is slightly above the shorter-term average but remains below the longer-term barrier. A sustained move above this narrow zone would strengthen the immediate recovery. Repeated rejection could leave the token vulnerable to renewed selling.

The price structure therefore remains mixed, with improving momentum meeting overhead resistance. The Relative Strength Index has risen to around 48, indicating modest positive momentum but remains below its neutral midpoint. The Moving Average Convergence Divergence line is also marginally above its signal line, supporting a tentative bullish shift.

For a more convincing recovery, ZEC needs to reclaim $1,320, the peak established Monday on the four-hour chart. A sustained break above that level could bring $1,422 into focus. That price corresponds to the September 18 low identified in the analysis and now serves as a potential upside resistance target.

If the rebound fades, Thursday’s low near $1,115 provides the next important downside reference. Below that, support stands around $1,050, corresponding to the September 4 high. The psychological $1,000 level offers a further threshold to watch.

Zcash’s immediate direction hinges on whether buyers can maintain momentum through the moving-average zone. Clearing $1,320 would reinforce the recovery, while failure to overcome resistance could expose the lower support levels again.