Zcash was under pressure on Thursday, with ZEC trading at $1,333.50, down 7.29% on the day with about three hours left before the daily candle closed.
That leaves the privacy coin roughly 21% below the $1,698.00 high it reached in late September. Even with the latest drop, the scale of the earlier move remains clear: ZEC had climbed about 253% from $480.72 to that peak.
Broader market conditions offered little support
The wider market was not giving Zcash much help. Bitcoin jumped to $85,600 on Wednesday after PCE inflation data came in softer than expected, then quickly gave back the move.
The 10-year Treasury yield closed at 5.29%, while CME FedWatch showed the probability of an October Federal Reserve rate hike dropping from 70% to below 50%.
ETF flows turned into a key part of the story
The article points first to ETF money. Grayscale launched its Zcash ETF, ticker ZCSH, on Aug. 25. By mid-September, the fund had attracted $233 million in net inflows.
On Wednesday, however, the fund posted a $30.25 million net outflow, leaving cumulative net inflows at almost $268 million. Its 3-for-1 share split also took effect that morning.
The source article included a chart of Zcash ETF flows, credited to SoSoValue.
Bitget hack fallout remains part of the backdrop
Another factor mentioned in the report is the Bitget hack, especially in terms of market sentiment. On Sept. 24, a group of hackers stole about $387 million from the exchange. That figure was revised up from an initial estimate of $351.6 million after transfers on the Zcash and Tron blockchains were included.
Bitget’s CEO said the attack was consistent with North Korean hacker groups, though formal attribution was still pending.
For a cryptocurrency trying to build a stronger reputation on Wall Street, that is not a welcome headline.
On Wednesday, blockchain investigator ZachXBT flagged 2,746 ZEC, worth about $3.9 million, moving from hack-linked addresses into Zcash’s shielded pool, where senders, receivers, and amounts are hidden.
The article said that transfer was probably not the direct trigger for Thursday’s decline, and that $3.9 million was relatively small in size, but it was not helping either.
Chart signals still lean bullish, but momentum has cooled
On the chart, the broader setup was described as still strongly bullish, even as the last five days of price action pointed to a steep correction.
The Relative Strength Index, or RSI, stood at 50.2. RSI measures buying and selling momentum on a 0-to-100 scale, and a reading near 50 is neutral. In that sense, ZEC was no longer stretched and no longer washed out. The article framed that as a release from the overbought readings seen during the rally.
The Average Directional Index, or ADX, came in at 52.0. ADX measures trend strength rather than direction, and anything above 25 is generally treated as a real trend. A reading of 52 is very strong, though the report noted that it mostly reflects the earlier vertical move and can stay elevated even while price falls because the indicator lags.
Exponential moving averages, or EMAs, also remained constructive. The 50-day EMA was still above the 200-day EMA, keeping the trend structure bullish on paper. If the decline continues, those lines would begin to converge, which is often one of the first signs of a trend change.
Even so, the article added that such a shift would likely require a sustained and rapid crash in Zcash, something it said was unlikely to happen soon.
Correction or end of the rally
The report argued that a 21% drop after a 253% surge is not unusual. It pointed to June, when ZEC fell from $635 to an intraday low of $309 after a critical vulnerability in its shielded pool was disclosed. The token later climbed past $1,600.
For now, the chart was described as showing a correction rather than a collapse. Trend indicators have not flipped, but momentum has cooled, and the Zcash ETF has just recorded a $30.25 million outflow.
Two levels were highlighted. A daily close below $1,233.00 would bring the so-called golden zone into play, while a move back above $1,410.72 would put the rally back on track.
The original article also noted that the author’s views and opinions were provided for informational purposes only and did not constitute financial, investment, or other advice.