Zcash Price Crashes Into Bear Market as ZEC ETF Outflows Jump

Zcash (CRYPTO: ZEC) has dropped sharply and moved into a local bear market as investors have started to capitulate. It has slipped by over 22% from last month’s high of $1,689 to the current $1,313. It remains about 622% above its lowest level this year, making it the 9th biggest coin in the world. Grayscale ZEC ETF Outflows are Rising There are signs that Zcash investors are starting to capitulate and book profits after its strong surge earlier this year. The recently launched Grayscale Zcash (NYSE:ZCSH) has had substantial outflows in the past few days. Its outflows rose to over $26 million on Friday, the third consecutive day of outflows. It has now lost over $55 million this month after adding $245 million last month. Its cumulative inflows since its inception jumped by $212 million, bringing its total assets under management to $$751 million. Read Also: Solana Price Prediction as SOL ETF and Staking Inflows Jump The ongoing ETF outflows has diverged from what other top cryptocurrencies have done. Bitcoin funds have added over $150 million in assets, while spot XRP (CRYPTO: XRP) funds have added over $1 million. Zcash’s futures open interest has continued to fall this month. It dropped to $2.5 billion from last month’s high of over $3.4 billion. Futures open interest is an important metric that looks at the number of futures contracts that are currently open and have not been closed or settled. A higher number is a sign that demand is rising. Despite this pullback, Zcash’s shielded tokens has continued rising in the past few months. Its shielded supply has jumped to over 4.89 million, up modestly from the July low of 4.3 million. Zcash Price Technical Analysis ZEC price chart | Source: TradingView The ongoing ZEC price retreat could be a mere pullback. For one, it has remained above the Supertrend indicator, which is a sign that bulls remain in control. Also, the coin has remained above the 50-day moving average, while the Relative Strength Index (RSI) has dropped below the neutral level of 50. The RSI suggests that Zcash could drop further as it nears oversold levels, before rebounding toward its highest level this year. The token has staged similar retreats and rebounds before, such as the one in September. A move above the year-to-date high of $1,689 would point to more gains. Read Also: MSTR in Focus as Michael Saylor Hints at Fresh Bitcoin Purchase Image: Shutterstock