Zcash surges 65% to 8-year highs on Grayscale ETF news, but analysts warn of overextension and imminent correction based on exchange inflows.
Macro & Markets ·
Zcash surged roughly 65% over the past week to reach an 8-year high, outperforming major cryptocurrencies amid news of Grayscale's planned Zcash ETF. The move has drawn attention as ZEC climbed substantially faster than Bitcoin and Ethereum during the same period.
The rally, however, has prompted caution from some analysts who point to technical weakening beneath the surface. Trading levels have extended above daily moving averages, a pattern some characterize as overextended, and recent exchange activity shows net inflows of ZEC into centralized platforms outweighing withdrawals—a condition typically associated with increased selling pressure.
The divergence between sentiment and on-chain flows raises questions about the rally's sustainability. Whether the ETF approval and institutional interest can support the current price level, or whether near-term profit-taking will reassert itself, remains unresolved.