FUNDAMENTAL OVERVIEW
Grayscale’s
ZCSH ETF recorded approximately $93.6 million of net outflows in the week
ending October 2, its first negative week since late August. The increasingly
negative geopolitical developments in the past weeks and Fed rate hike
expectations might have been behind the outflows since most of the Zcash-specific
good news have been already priced in.
Moreover, Zcash activated NU7 on public testnet on October 4, slightly
ahead of the previously expected October 6 date. The upgrade reduced target
block time from 75 seconds to 25 seconds, while also introducing a Network
Sustainability Mechanism and new limits for shielded transactions. Developers
will assess the results and make the final mainnet activation decision on October
20, with November 5 currently targeted for mainnet activation.
Looking
ahead, US-Iran developments will likely remain the main focus this week give
the light calendar. A breakthrough in negotiations would be positive for Zcash,
as it would trigger a further unwinding of aggressive Fed rate hike
expectations. Conversely, a prolonged stalemate or a deterioration in the
situation could continue to weigh on risk sentiment and keep a lid on the
broader crypto market.
ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Zcashbroke below the major upward
trendline and extended the losses as the sellers piled in to target a drop into
the 1,031 level next. If the price gets there, we can expect the buyers to step
in, with a defined risk below the level, to position for a rally into new
highs. The sellers, on the other hand, will look for a break lower to extend
the drop into the 800.00 level next.
ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have a minor upward counter-trendline defining the recent
pullback. The buyers will likely lean on the trendline, with a defined risk
below it, to position for a rally into the 1,500 level. The sellers, on the
other hand, will look for a break lower to increase the bearish bets into the
1,031 level next.
ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1
hour chart, we have a minor downward trendline defining the current bearish move
into the 4-hour trendline. If we get a bounce on the 4-hour trendline, we can
expect the sellers to lean on the downward trendline, with a defined risk above
it, to keep targeting new lows. The buyers, on the other hand, will look for a
break higher to increase the bullish bets into the 1,500 level next.
UPCOMING CATALYSTS
Todaywe get the US ISM Services PMI. On Wednesday, we have
the FOMC meeting minutes. On Thursday, we get the latest US Jobless Claims
figures. On Friday, we conclude the week with the University of Michigan
Consumer Sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.