Zcash (ZEC) extended its decline on November 12, falling below USD 1,000 despite Grayscale's recently announced ecosystem funding initiative. ZEC traded near USD 981, declining 0.72% daily and more than 26.43% weekly as ETF withdrawals and liquidations intensified.
Grayscale announced a USD 1 million commitment on November 10 to support Zcash development, privacy research and community initiatives. According to Grayscale, USD 400,000 has already been distributed equally among the Zcash Foundation, Shielded Labs, Project Tachyon and Pretty Good Policy for Zcash.
The asset manager also pledged 100% of ZCSH sponsor fees toward ecosystem initiatives for up to one year. However, this commitment does not represent direct ZEC purchases. SoSoValue’s data showed that Grayscale's ZCSH ETF recorded approximately USD 30 million in November outflows through November 11, following USD 46.25 million in October.
Zcash derivatives experienced substantial liquidations as prices weakened. CoinGlass reported that approximately USD 18 million in ZEC positions were liquidated over 24 hours, with leveraged longs accounting for 72%. Open interest stood near USD 2.12 billion, while funding rates remained positive at 0.0056%.
The taker buy/sell ratio reached 0.96, indicating stronger market selling than buying during the measured period. Despite these pressures, Zcash recorded USD 11.32 million in spot net inflows and USD 3.74 million in futures net inflows on November 12.
ZEC traded below its 20-day moving average of USD 1,206.82 and the lower Bollinger Band near USD 1,005. Immediate support stood around USD 960, followed by USD 900.
Analyst Altcoin Sherpa identified USD 800-USD 900 as a possible bottoming zone. Meanwhile, the 14-day Relative Strength Index (RSI) approached 34, indicating weakening momentum without confirming a reversal.
Zcash activated its NU7 upgrade on November 6, reducing target block intervals from 75 seconds to 25 seconds. However, technological improvements and Grayscale's funding commitment have not offset selling pressure. A sustained recovery above USD 1,005 could improve sentiment, while a loss to USD 900 would increase downside risks.
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