Zcash price crashes 13% despite Grayscale's $1 million push: is $880 now in play?

Zcash ZEC continues to struggle on Wednesday, down 13% in the last 24 hours. The bearish performance pushes the privacy-focused token below the psychological $1,000 level.

The cryptocurrency has lost more than 20% over the past five days as stronger-than-expected US inflation data fuels concerns about tighter monetary policy.

The decline has overshadowed recent efforts by Grayscale to promote Zcash and support development across its ecosystem.

Hot US inflation data triggers market sell-off

The latest US Consumer Price Index (CPI) report has added to the pressure facing Zcash and the broader cryptocurrency market.

According to the official data, consumer prices increased 0.4% in October, exceeding economists' expectations of a 0.3% rise.

Invezz@InvezzPortal

US inflation ran hotter than expected in October. Consumer prices rose 0.4% on the month vs 0.3% forecast, and core prices, which strip out food and energy, rose 0.3% vs 0.2%. No annual rate this month. It's the last CPI report before the Fed meets on 8-9 December.

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Although the reading was lower than September's 0.6% increase, the upside surprise has reinforced concerns that inflation remains elevated.

The data has also strengthened expectations that the Federal Reserve could raise interest rates at its next policy meeting.

Bitcoin fell below $74,000, while Zcash recorded a sharp decline that brought its price closer to $1,000.

The sell-off has also triggered substantial liquidations in the derivatives market. According to CoinGlass data, more than $700 million in cryptocurrency positions were liquidated over the past 24 hours.

Long positions accounted for nearly $551 million of the total, indicating that traders betting on higher prices suffered the largest losses.

The forced closure of leveraged positions can amplify downward price movements, particularly when market liquidity is thin and investor confidence is already weakening.

Grayscale's Zcash campaign fails to offset selling pressure

Zcash's latest decline has occurred despite renewed promotional and financial support from Grayscale.

The digital asset investment firm recently launched a Zcash-focused marketing campaign, including a prominent advertisement on the front page of The Wall Street Journal.

Grayscale has also committed sponsor fees toward initiatives supporting the Zcash network, including development, marketing, community engagement, and education.

Grayscale@Grayscale

We are reinvesting 100% of $ZCSH sponsor fees into the Zcash network across development, marketing, community, and education. Privacy should be accessible to everyone. $ZEC

Zcash Invest 🛡️@ZcashInvest

The power of Zcash ($ZEC) is built and strengthened by the community around it. That’s why we’re directing $1M to non-profit organizations and initiatives advancing the Zcash ecosystem. We’ve awarded the first $400K to @ZcashFoundation, @pgpzcash, @TachyonZcash, and

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However, they have done little to prevent the cryptocurrency's latest correction.

ZEC fell approximately 13% in the last 24 hours as investors focused on inflation concerns and the prospect of tighter US monetary policy.

Derivatives market data suggests that traders are becoming increasingly cautious about Zcash's near-term prospects.

According to CoinGlass, the Zcash futures taker buy-to-sell ratio declined to 0.93 on Wednesday. A reading below 1 indicates that aggressive market sell orders are outweighing aggressive buy orders.

ZEC risks falling toward $880

Zcash's technical outlook has deteriorated significantly following its recent breakdown below important support levels.

At the time of writing on Wednesday, ZEC is down approximately 13% and trading below $1,000.

ZEC has fallen below its 50-day Exponential Moving Average (EMA) at $1,202, signaling that the near-term trend has shifted firmly in favor of sellers.

The next important moving-average support stands at the 200-day EMA near $880. This level has become a potential downside target following Zcash's recent breakdown from a consolidation range.

If ZEC fails to stabilize around the psychological $1,000 level, selling pressure could accelerate toward the 200-day EMA at $880.

A dip to this region would represent a further setback for buyers attempting to defend the cryptocurrency's recent gains.

Momentum indicators reinforce the bearish outlook for Zcash. On the daily chart, the Moving Average Convergence Divergence (MACD) has moved below the zero line, while its negative histogram bars continue expanding.

The Relative Strength Index (RSI) has also declined to approximately 34, reflecting persistent selling pressure.

Although the RSI is approaching oversold territory, it remains above the conventional threshold of 30.

The combination of a negative MACD, declining RSI, and a breakdown below major support levels suggests that ZEC remains vulnerable to further losses.

Despite the current weakness, Zcash could attempt a short-term recovery if buyers begin accumulating near the psychological $1,000 level.

The first significant resistance is $1,050, which previously acted as support before Tuesday's breakdown.

Beyond $1,050, the next important resistance stands at $1,112, corresponding to the lower boundary of Zcash's previous consolidation range.

Reclaiming this level would improve the near-term technical structure and potentially open the door for a recovery toward the 50-day EMA around $1,202.

AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.