• Zcash hovers near $250 on Wednesday, holding the 10% gains from the previous day.
• Google's Quantum AI white paper flags security risks for Bitcoin and Ethereum, while Zcash emerges unscathed.
• Derivatives data shows a sudden surge in retail interest in ZEC futures.

Zcash (ZEC) trades around $248 at press time on Wednesday, up from the $232 low earlier on the day and holding the 10% gains from the previous day. Google positions shielded ZEC tokens as a safer bet than Bitcoin (BTC) and Ethereum (ETH), driving up retail demand, as evidenced by a surge in ZEC futures Open Interest.

Zcash should surpass the 50-day Exponential Moving Average (EMA) near a descending trendline to resume an upward trend.

Google’s quantum warning renews privacy coin demand

Google Quantum AI's white paper issued a quantum warning to dormant Bitcoin and Ethereum, as previously reported by FXStreet. However, Zcash’s shielded transactions with a block time of 75 seconds provide better security against fast-clock quantum computers attempting "on-spend" attacks on transactions. 

The success rate of such attacks is as low as 1 in 1300, according to Google’s white paper. Still, Zcash remains vulnerable to retroactive risks, including the possibility that quantum computers could reveal older anonymous transactions, decrypt viewing keys for users with multiple unlinked accounts, and compromise the soundness of zkSNARK protocols. 

Looking ahead, the Zcash Foundation aims to roll out the Tachyon upgrade to mainnet by the end of 2026, eliminating in-band secret distribution and closing the door on retroactive risks.

Derivatives data backs ZEC bounce back

Zcash derivatives data signal a surge in retail interest, as seen in ZEC futures' Open Interest (OI). According to CoinGlass, ZEC futures OI stands at $473.48 million, up from $357.88 million on Tuesday, reflecting the increased notional value of open contracts. Typically, an OI jump during a surge in spot price reaffirms the bullish narrative as traders anticipate further recovery.

Technical outlook: Will Zcash price exceed $250?

Zcash shows a rebound approaching the $250 psychological level so far this week, close to the 50-day EMA at $248, and a declining trendline. The near-term bias is cautiously bullish as ZEC holds above the recent lows, while remaining capped beneath the long-standing descending resistance line.

A daily close above $250 could confirm the upside breakout and open the path toward the 200-day EMA at $274, followed by the 23.6% Fibonacci retracement level at $362, measured from the $34.45 low to the $750 high.

The Moving Average Convergence Divergence (MACD) line has turned higher above the signal line and moved back into positive territory on the daily chart, with the histogram expanding, suggesting strengthening upside pressure. The Relative Strength Index (RSI) at 56 reinforces the recovery of bullish momentum without signaling overbought conditions.

Looking down, the key support for Zcash is at the 38.2% Fibonacci retracement level at $231, followed by the rising trendline near the $200 psychological support level.

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