The past 48 hours have reshaped the narrative around ZCash (ZEC), turning volatility into an opportunity for traders and long-term believers. After nosediving to $190 on October 17 as Bitcoin dropped below $105,000, ZEC attracted swift attention, not just from retail speculators, but from serious institutional players. What’s behind this dramatic rebound and what can we expect next? Here’s my take.
On the heels of a brutal 20% intraday drop, ZEC’s price hovered with critical Fibonacci support around $201.68. That same session saw the 14-day RSI collapse to 37, signaling deeply oversold conditions. By the next day, momentum reversed sharply, boosted by traders stepping in around the 38.2% retracement—to push ZEC up 7.16% in a single session. The token is now resting at $216.15 and sporting a $3.52 billion market cap.
But here’s where it gets interesting, Grayscale’s ZCash Trust reported new inflows totaling $46 million this month. And shielded transactions reached 4.42 million ZEC, about 27% of the entire circulating supply. If you follow institutional footprints, this is crucial, big money is eyeing ZEC. With the shielded pool now valued at $1.12 billion, liquid supply is dwindling, which naturally puts a floor under prices and could amplify future surges.
Despite this momentum, caution remains. The 23.6% Fibonacci retracement at $238.11 is now a clear resistance, while bulls need consistent closes above the $220 pivot to confirm that a real reversal is in play. If ZEC can break and sustain above $220, it could rapidly target $238 and even $265, with failure to hold $190 opening the door for retests of deeper support near $157.
ZEC plunged alongside Bitcoin’s fall but rebounded as traders bought at oversold levels and institutions accumulated more ZEC, particularly around the $200 mark.
Growth in shielded pool usage reduces liquid supply, which can create upward price pressure, especially as institutional interest climbs.
Consistent closes above $220 are vital to confirm a trend reversal, with $238 and $265 as immediate upside targets, and $190/$157 as support.
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