Grayscale Boosts Zcash Outlook Amid Institutional Interest and Spot Demand

Grayscale is amplifying its bullish outlook on Zcash as institutional interest in blockchain privacy continues to rise. The asset manager recently highlighted that Zcash could further expand its dominance in the privacy-focused blockchain market. This sentiment is set to be reinforced by Zach Pandl, Grayscale's Head of Research, who will present the "Macro Case for Zcash" at the Digital Asset Yield Summit in Singapore on October 6th.

A significant move in the Zcash market saw a new wallet withdraw 7,166 ZEC, valued at approximately $9.67 million, from Coinbase within a 12-hour window. This withdrawal reduced the available supply of ZEC on the exchange, signaling fresh accumulation and underlying demand. Despite Zcash's ongoing price correction, spot market activity remains favorable, with the Spot Taker CVD indicator showing aggressive buyers outweighing sellers.

Zcash's Binance Liquidation Heatmap reveals a notable concentration of leveraged positions above the current market price, particularly in the $1,370, $1,380 range. This cluster presents a potential liquidity target if ZEC's price recovers. Further liquidation levels extend up to $1,400, though their concentration is more dispersed. The current price stabilization follows a retracement from recent highs, with key support developing around the $1,295 area.

From a technical standpoint, Zcash completed an Elliott impulse wave, which had earlier predicted a fifth-wave advance towards $1,500 after establishing wave-four support around $1,054.72. ZEC surpassed this target, reaching the $1,600, $1,700 region before correcting down to $1,295. The RSI indicator now stands at 49.65, reflecting weaker buying pressure. Holding the $1,295 support could pave the way for a recovery towards the $1,370, $1,380 liquidity cluster, while losing this support might extend the retracement towards $1,100.