Zcash Price Forecast: Retail speculation supports ZEC rebound despite ETF outflows

• Following a 7% advance the previous day, Zcash has risen 5% on Wednesday, building on gains above the 50-day EMA at $1,208.
• Outflows exceeding $3 million on Tuesday point to a fresh wave of selling in the ZEC-focused ETF.
• As spot prices recover, a steady increase in Zcash futures Open Interest above 2 million ZEC signals that traders are building positions.

With derivatives Open Interest reaching a seven-day high, renewed retail participation is helping Zcash (ZEC) gain ground on Wednesday. The Democrats’ victory in the US midterm elections is putting considerable pressure on the US Dollar (USD), lending support to risk-sensitive assets such as cryptocurrencies. Institutional investors, however, have remained cautious so far this week, with redemptions exceeding $7 million. 

A firmly bullish technical picture accompanies the ZEC rebound, which points to a possible breakout from its trading range ahead of the NU7 upgrade.

US midterms and approaching NU7 upgrade strengthen retail interest in Zcash

The Democrats’ move to take control of Congress has coincided with a recovery across the cryptocurrency market, with Zcash attracting fresh retail interest. Friday’s Zcash Network Upgrade 7 (NU7) provides an additional, asset-specific source of support.

Having stood at 1.96 million ZEC on Sunday, ZEC Open Interest (OI) reached 2.17 million ZEC on Wednesday, according to CoinGlass. The increase suggests growing bullish speculation among traders, as positions build alongside the price recovery.

Institutional investors, by contrast, took profits earlier this week, generating consecutive daily outflows of $3.58 million and $3.63 million. The selling suggests that political uncertainty around the US midterms had put these investors under pressure. With the results now known, however, political gridlock is weighing on the US Dollar and offering some respite to risk-sensitive assets, Zcash among them.

Technical outlook: Zcash rebound points to potential breakout rally

After recovering 7% the previous day, Zcash is extending its gains to trade at $1,282 at the time of writing on Wednesday. The privacy coin has regained the 50-day Exponential Moving Average (EMA) at $1,209. Its position comfortably above the longer-term 200-day EMA at $850 reinforces a positive long-term bias.

For almost a month, the October 8 low of $1,112 and high of $1,340 have contained the price in a consolidation range. A daily close above $1,340 could confirm that ZEC’s rebound has produced a bullish breakout, clearing the way towards the September 26 peak of $1,698.

Buyers appear to be gradually regaining the upper hand: on the daily chart, the Moving Average Convergence Divergence (MACD) is crossing above its signal line, while the Relative Strength Index (RSI), at around 53, has a modest bullish tilt.

On the downside, the first support level lies near $1,209 at the 50-day EMA. Below that, the October 8 low and high of $1,112 mark an area of deeper structural demand.

(The technical analysis of this story was written with the help of an AI tool. Know more.)