Grayscale has reinforced its bullish stance on Zcash ($ZEC) as institutional attention turns increasingly toward blockchain privacy. The asset manager recently indicated that Zcash could continue extending its share of the blockchain privacy market, and the privacy narrative has now gained another platform through the firm's Head of Research.

Grayscale to present the macro case in Singapore

Zach Pandl, Grayscale's Head of Research, was expected to present the “Macro Case for Zcash” at Singapore's Digital Asset Yield Summit on October 6. His appearance was set to put Zcash's privacy proposition before an audience increasingly focused on opportunities across institutional digital assets. For a narrative built around privacy, that kind of access to an institutional research platform is itself a marker of how far the sector has traveled into mainstream digital asset conversations.

The development follows expanding interest in cryptocurrencies that concentrate primarily on privacy, as investors reassess their role within the wider market. Notably, that attention arrived at the same time large $ZEC holders were moving substantial supply away from trading platforms.

Fresh accumulation validates $ZEC demand

According to Lookonchain in an X post, a newly created wallet withdrew 7,166 $ZEC, valued at roughly $9.67 million, from Coinbase within 12 hours. Moving a position of that size off the exchange reduced the amount of $ZEC tokens immediately available on the platform. Outflows of this kind matter to readers because tokens held in private wallets are not instantly sellable on the venue — although on-chain movements alone do not reveal the holder's intent.

Spot market activity also favored the underlying demand outlook despite $ZEC's ongoing price correction. The Spot Taker CVD indicator — which measures whether aggressive market orders lean toward the buy or sell side — remained taker-buy dominant at press time, suggesting aggressive buyers continued to outweigh sellers across spot markets. Taken together, the Coinbase withdrawal fits within a broader pattern of sustained spot demand, although bulls have yet to translate that demand into a sustained price recovery.

Liquidation liquidity builds above the market

$ZEC's Binance Liquidation Heatmap shows a significant concentration of leveraged positions sitting above the prevailing market price. Heatmaps of this type map where leveraged positions would be forcibly closed, and dense clusters tend to draw attention because price can accelerate through them as those closures cascade. The strongest nearby liquidity cluster appears the $1,370–$1,380 region, introducing a potential liquidity target in the event of a price recovery. Additional liquidation levels extend above that zone, though their concentration becomes more dispersed toward $1,400.

This positioning has created considerable overhead liquidity as $ZEC attempts to stabilize following its retracement from recent highs. A rebound from the developing key support would put the $1,370–$1,380 cluster in focus first, and a move into that area could trigger short liquidations and potentially validate an initial recovery attempt.

Retracement follows a completed Elliott impulse wave

The pullback came after Zcash completed the Elliott impulse wave earlier projected by AMBCrypto. That setup anticipated a fifth-wave advance toward the $1,500 level after $ZEC established wave-four support around the $1,054.72 area. Price ultimately exceeded that target, reaching the $1,600–$1,700 region before a correction developed.

$ZEC subsequently pulled back toward the $1,295 area, where bulls attempted to establish near-term support. The Relative Strength Index, a momentum indicator read against overbought and oversold thresholds, cooled to 49.65 following the correction, reflecting weaker buying pressure after previously overbought conditions.

Per the analysis, a sustained hold of $1,295 could support a relief move toward the dense liquidation cluster around $1,370–$1,380. Losing that support, however, could extend the retracement toward the order block immediately below, which stretches toward $1,100 and provides deeper structural support. A reaction from that order block could give buyers another base should the $1,295 level fail.

Grayscale's deepening focus on Zcash now coincides with a fresh $9.67 million Coinbase withdrawal, while spot buyers continue to absorb available supply. The key level to watch is $1,295 — a sustained hold there could open a path toward the overhead liquidity clustered above. Beyond the chart, the follow-through worth monitoring is whether the Singapore appearance broadens Grayscale's privacy thesis across institutional research channels and whether exchange outflows of this scale persist.

Source: CryptoNewsNet