Zcash Price Forecast: How is retail speculation countering ETF outflows as ZEC rebounds?

• Following a 7% advance in the previous session, Zcash adds 5% on Wednesday, building on its gains above the 50-day EMA at $1,208.
• Fresh selling pressure hits the ZEC-focused ETF, with Tuesday’s outflows exceeding $3 million.
• As spot prices recover, steadily increasing Zcash futures Open Interest above 2 million ZEC points to a build-up in positions.

Risk-sensitive assets, including cryptocurrencies, are finding support on Wednesday as the Democrats’ victory in the US midterm elections puts considerable pressure on the US Dollar (USD), helping Zcash (ZEC) gain momentum. Institutional investors have remained defensive so far this week, with redemptions exceeding $7 million. Meanwhile, Open Interest has reached a seven-day high, with derivatives data pointing to a return of retail participation. 

A strongly bullish bias remains evident in ZEC’s technical outlook, as the recovery signals a possible breakout from its trading range ahead of the NU7 upgrade.

Are US midterms and the upcoming NU7 upgrade strengthening Zcash’s retail interest?

Retail interest in Zcash appears to be picking up alongside a recovery across the broader cryptocurrency market. The rebound coincides with Democrats gaining control of Congress, while Friday’s Zcash Network Upgrade 7 (NU7) offers an additional, coin-specific boost.

Position-building alongside the price recovery suggests growing bullish speculation among traders. According to CoinGlass, ZEC Open Interest (OI) increased from 1.96 million ZEC on Sunday to 2.17 million ZEC on Wednesday.

Institutional activity, by contrast, reflected profit-taking earlier this week, with successive daily outflows of $3.58 million and $3.63 million. The withdrawals suggest that uncertainty over the US midterms prompted institutional investors to sell. With the results now available, however, political gridlock is weighing on the US Dollar and offering some relief to risk-sensitive assets such as Zcash.

Technical outlook: Can Zcash’s recovery trigger a breakout rally?

After recovering 7% in the previous session, Zcash extends its advance to trade at $1,282 at the time of writing on Wednesday. Having regained the 50-day Exponential Moving Average (EMA) at $1,209, the privacy coin remains comfortably above the longer-term 200-day EMA at $850, reinforcing a constructive long-term bias.

For almost a month, ZEC has consolidated within the range defined by the October 8 low of $1,112 and high of $1,340. A daily close above $1,340 could confirm a bullish breakout as the recovery continues, potentially clearing the way towards the September 26 peak of $1,698.

Buyers appear to be gradually regaining control: on the daily chart, the Moving Average Convergence Divergence (MACD) moves above its signal line, while the Relative Strength Index (RSI), at around 53, carries a modest bullish bias.

On the downside, the first support level lies near $1,209 at the 50-day EMA. Below this, deeper structural demand is located at $1,112, identified as the October 8 low and high.

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