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

• Zcash is up 5% on Wednesday. Following the previous day’s 7% advance, gains are extending above the 50-day EMA at $1,208.
• More than $3 million left the ZEC-focused ETF on Tuesday as selling pressure returned.
• Above 2 million ZEC, Zcash futures Open Interest continues to climb steadily, signalling a build-up in positions alongside the spot price recovery.

Redemptions have exceeded $7 million so far this week. Institutional investors have remained defensive, but Zcash (ZEC) is gaining momentum on Wednesday as the Democrats’ victory in the US midterm elections puts heavy pressure on the US Dollar (USD). This is supporting risk-sensitive assets, including cryptocurrencies. Meanwhile, derivatives data points to renewed retail participation, with Open Interest reaching a seven-day high. 

A strongly bullish technical outlook for ZEC suggests the rebound could develop into a range breakout ahead of the NU7 upgrade.

NU7 Upgrade and US Midterms Support Zcash Retail Interest

Against a recovering cryptocurrency market, retail interest in Zcash appears to be returning. The broader recovery coincides with Democrats taking control of Congress. Friday’s Zcash Network Upgrade 7 (NU7) provides an additional, coin-specific tailwind.

On Wednesday, ZEC Open Interest (OI) reached 2.17 million ZEC, compared with 1.96 million on Sunday, according to CoinGlass. The increase in positions alongside recovering prices suggests stronger bullish speculation among traders.

Institutional investors, by contrast, took profits earlier this week. Outflows totalled $3.58 million and $3.63 million over two consecutive days, suggesting that political uncertainty around the US midterms had prompted institutional selling. With the results now announced, however, political gridlock is putting pressure on the US Dollar and offering some relief to risk-sensitive assets, including Zcash.

$1,340 Breakout Level in Focus as Zcash Rebounds

At the time of writing on Wednesday, Zcash stands at $1,282. It is building on the previous day’s 7% recovery. The privacy coin has regained the 50-day Exponential Moving Average (EMA) at $1,209 and remains comfortably above the longer-term 200-day EMA at $850, supporting a positive long-term bias.

For almost a month, ZEC has consolidated between $1,112 and $1,340, the low and high recorded on October 8. A daily close above $1,340 could confirm that the rebound has broken this range to the upside, opening the way towards the September 26 peak of $1,698.

On the daily chart, the Moving Average Convergence Divergence (MACD) is crossing above its signal line. The Relative Strength Index (RSI), at around 53, also shows a modest bullish tilt. Together, these indicators suggest buyers are gradually recovering control.

On the downside, the 50-day EMA near $1,209 provides the first support level. Further structural demand lies 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.)