Zcash continued its recovery above $1,300 on Wednesday, outperforming other major cryptocurrencies, supported by sustained ETF inflows and growing activity in its derivatives market.
The privacy coin is approaching $1,373, a resistance level that previously limited gains earlier this month.
Clearing that barrier would strengthen the bullish outlook after the recent rebound.
Grayscale’s Zcash-focused exchange-traded fund, ZCSH, attracted $3.45 million on Tuesday, according to SoSoValue data.
That followed $1.96 million on Monday, bringing the week’s net inflows to $5.41 million.
The fund has now recorded six consecutive positive sessions, extending momentum from last week’s $41.09 million in inflows.
The figures indicate renewed demand through the investment product, although they do not establish the identity or motivations of individual buyers.
Open Interest climbs as short sellers face liquidations
Zcash futures open interest increased 10% over the last 24 hours to $2.88 billion, according to CoinGlass.
The rise reflects an increase in the dollar value of outstanding contracts.
Both higher prices and the opening of new positions can contribute to that figure, so it does not independently confirm fresh bullish positioning.
Liquidations, nevertheless, show that traders betting against ZEC faced substantial pressure during the recovery.
Short positions accounted for $7.58 million of the $8.22 million liquidated over the period.
Short liquidations can amplify upward moves as positions are forcibly closed.
Meanwhile, a positive funding rate of 0.0033% indicates that longs were paying shorts, consistent with demand for bullish exposure.
Zcash faces a breakout test at $1,373
ZEC remains above its 50-day Exponential Moving Average near $1,203 and its 200-day EMA around $820, preserving a constructive broader technical structure.
The immediate challenge is $1,373, approximately the midpoint of the decline from $1,698 to $1,049. That level has already acted as resistance during the month.
A confirmed breakout could create room for a broader advance toward the $1,698 swing high.
Holding above resistance after the breakout would provide stronger confirmation than a brief move through it.
Until then, the recovery remains vulnerable to renewed selling near the barrier.
The daily Relative Strength Index stands around 54, indicating positive momentum without reaching conventional overbought territory.
The Moving Average Convergence Divergence indicator also shows a strengthening positive profile, supporting the improving technical outlook.
If Zcash retreats, the 50-day EMA near $1,203 provides the first notable support.
Below it, the previous low around $1,049 becomes the next reference point.
A deeper decline would bring the 200-day EMA near $820 into focus.
For now, sustained ETF demand and improving momentum support the rebound, with $1,373 remaining the key hurdle for buyers.
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