Grayscale Doubles Down on Bullish Zcash Thesis Amid Mixed Signals

Grayscale has reaffirmed its bullish stance on Zcash despite mixed signals from technical indicators and institutional outflows. The asset manager argued that the privacy-focused cryptocurrency's rally is not over, citing growing demand for privacy-preserving blockchain technology.

ZEC's price closed September at $1,414 after retreating from a peak near $1,687. Its spot ETF recorded net outflows of $8.12 million and $30.25 million in late September.

On-chain data shows two wallets withdrew roughly $28 million worth of ZEC from exchanges, a pattern some interpret as whale accumulation. Technical indicators suggest consolidation may continue, with the $1,400 level now the key battleground.