Zcash price drops below $1,000 despite Grayscale’s $1M pledge
Zcash price has fallen below $1,000 on November 12, extending its recent losses as withdrawals from Grayscale’s Zcash exchange-traded fund and pressure on leveraged traders weigh on the privacy-focused cryptocurrency.
- Zcash price fell below $1,000 as the privacy coin continued its recent market decline today.
- Grayscale’s Zcash ETF recorded reported November outflows despite its new $1 million ecosystem funding commitment.
- ZEC derivatives liquidations reached approximately $18 million, with leveraged long positions accounting for most losses.
- Analysts identified potential downside targets as Zcash struggled to recover its previous short-term support levels.
- Technical indicators place immediate ZEC support near $960, followed by $900 if selling pressure persists.
According to crypto.news market data, ZEC traded near $979, down approximately 3.7% over 24 hours and more than 25% over the past week. The token moved between $950 and $1,020 during the session, while Bitcoin remained relatively flat near $73,700.
The latest decline follows Zcash’s rally above $1,300 last week, when traders were watching for a possible recovery toward $1,500. Instead, selling continued even after Grayscale announced fresh financial support for the network.
Zcash price falls as Grayscale ETF records outflows
Zcash’s weakness has coincided with withdrawals from Grayscale’s Zcash ETF, which trades on NYSE Arca under the ticker ZCSH.
The fund recorded nearly $30 million in net outflows in November through November 11, following approximately $46.25 million in October, per SoSoValue.
The withdrawals came as Grayscale announced a $1 million initiative to support organizations working on Zcash development, privacy technology and community projects.
In its November 10 announcement, the asset manager said it would direct 100% of the sponsor fees collected from ZCSH toward network development, marketing, community activities and education for up to one year.
The company has already awarded $400,000, divided equally among the Zcash Foundation, Shielded Labs, Project Tachyon and Pretty Good Policy for Zcash.
Grayscale launched an investor education campaign alongside the funding commitment, including advertising designed to promote Zcash’s privacy features.
The financial support has not reversed the cryptocurrency’s recent decline. However, the company’s commitment concerns how it spends its fund revenue, not a direct promise to purchase ZEC tokens.
The Zcash ETF began trading in August after Grayscale converted its existing investment trust into an exchange-traded product.
ZEC liquidations
Derivatives data shows that leveraged trading has contributed to the pressure on Zcash as its price retreats.
Data from CoinGlass showed nearly $18 million in ZEC liquidations over 24 hours, with long positions accounting for roughly 72% of the total.
Open interest stood near $2.12 billion, while the funding rate remained positive at approximately 0.0056%.
The combination of falling prices and reduced open interest suggests traders have been closing leveraged positions, including bets that Zcash would recover.
Market activity remained tilted toward sellers, with a taker buy/sell ratio of 0.96. A reading below one indicates that market sell orders exceeded market buy orders during the measured period.
Moreover, CoinGlass data for November 12 showed Zcash recording $3.74 million in futures net inflows and $11.32 million in spot net inflows.
Despite the positive readings, the chart shows repeated futures outflows throughout October and early November. The latest inflows indicate a temporary shift toward positive capital flows but do not confirm that selling pressure has ended.
Zcash’s retreat follows the November 6 recovery attempt, when the token climbed above $1,370 and analysts identified $1,350 as an important resistance level.
Analysts identify further downside risks for ZEC
Crypto analyst Altcoin Sherpa expects Zcash to establish a possible bottom between $800 and $900 before attempting another recovery. The analyst placed the potential reversal area well below ZEC’s latest trading price.
Crypto Patel offered a more bearish assessment, advising traders to take profits on part of their holdings and use stop-loss orders on the remainder.
The analyst identified a possible decline toward the $500–$200 region, although this remains a speculative scenario rather than a confirmed price target.
Zcash’s latest downturn occurred despite the network completing its NU7 upgrade on November 6. The network upgrade reduced the target block interval from 75 seconds to 25 seconds and introduced changes to shielded transaction limits.
Zcash price prediction as $900 support comes into focus
The daily chart places Zcash near $979, below its 20-day moving average of $1,206.82 and lower Bollinger Band at $1,005.11.
Its Bollinger Band Percentage indicator stands at -323.08, indicating an unusually extended decline below the recent trading range.
Immediate support lies between $960 and $980, followed by the psychological $900 level. A sustained break below $900 could expose the next support area around $800.
For a recovery, ZEC would first need to reclaim $1,005 to move back inside its Bollinger Bands. The 20-day moving average near $1,207 remains the next major resistance level.
The earlier November 12 market snapshot placed Zcash’s 14-day RSI near 34, approaching the conventional oversold threshold of 30 without confirming a reversal.
Zcash’s next community funding proposal window closes November 13, while voting on the existing grants program is scheduled for December 17–29.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
