Zcash (ZEC) continued its decline on Thursday amid inflation concerns that overshadowed the return of inflows into the Grayscale exchange-traded fund. The coin traded around $1,100, extending a drop of approximately 6% from the previous day, and fell below last week's low of $1,115. The correction is from the late September peak at $1,698.
The U.S. Consumer Price Index showed annual inflation at 3.7% against expectations of 3.6%. This heightened concerns about persistent inflation and potential rate hikes, reducing interest in cryptocurrencies. Additional pressure comes from Bitcoin's vulnerability around $80,000: further weakening could intensify sell-offs among altcoins, including Zcash.
The Grayscale ZCSH fund attracted $3.68 million on Wednesday, according to SoSoValue. The inflow ended two days of outflows, which were preceded by two weeks of net outflows. However, one positive session does not indicate a sustainable recovery in demand.
On the four-hour chart, the price is below the 50-period exponential moving average (EMA) around $1,242 and the 200-period EMA around $1,264, which form a resistance zone. The MACD remains below zero, and the Relative Strength Index (RSI) is around 34. A four-hour close below $1,115 could open the path to $1,050 (September 4 high) and $1,000. If $1,000 is lost, the next target will be around $888 (August 23 high). A return above the resistance zone would ease the pressure on the price.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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