Can Zcash price rebound to $690 despite fading futures demand?

Zcash ZEC has lost nearly 6% of its value in the last 24 hours as traders returned to accumulate the privacy-focused cryptocurrency during the pullback.

Although derivatives activity cooled slightly with a decline in futures Open Interest, rising funding rates indicate that bullish sentiment remains intact, supporting the possibility of another move toward key resistance levels.

Funding rate rises despite lower Open Interest

Data from CoinGlass shows that Zcash futures Open Interest (OI) declined by more than 5% over the past 24 hours to $1.11 billion, reflecting a modest reduction in outstanding perpetual futures positions following Thursday's correction.

However, the market's funding rate increased sharply from 0.0100% to 0.0166%, suggesting that traders continue opening long positions and buying the recent dip despite the temporary decline in leverage.

The combination of lower Open Interest and higher funding rates points to continued retail confidence rather than a broader shift toward bearish sentiment.

The bearish performance in the broader cryptocurrency market comes as the United States launched a wave of strikes against Iran for the sixth night in a row, its military said, as the two sides battled over control of the Strait of Hormuz.

According to the US Central Command (Centcom), yesterday’s attacks were intended to "further degrade Iranian military capabilities."

Zcash technical analysis: ZEC holds above key technical support

The ZEC/USD 4-hour chart is bearish and efficient as Zcash has suffered losses in the last few days. 

However, Zcash continues to maintain a bullish market structure after holding above several critical support levels.

At the time of writing, ZEC is trading above the 50-day Exponential Moving Average (EMA) at $476 and the 200-day EMA at $390. 

Holding above these technical levels reinforces the broader uptrend despite recent price volatility.

If buying momentum resumes, Zcash could retest its previous swing high near $690. A decisive breakout above that resistance may accelerate bullish momentum toward the next major supply zone around $987. 

Technical momentum indicators continue to support the bullish outlook.

The Relative Strength Index (RSI) is hovering around 59, indicating that there is still room for additional gains before the market enters overbought territory.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is still within positive territory, with the MACD line remaining above its signal line.

This crossover suggests buyers continue to maintain control of the short-term trend.

While the overall outlook remains constructive, traders should monitor nearby support levels in case of another pullback.

The first important support lies at the 78.6% Fibonacci retracement level near $520.

If selling pressure increases, the 50-day EMA at $476 could serve as the next major demand zone where dip buyers may re-enter the market.

As long as Zcash remains above these support levels, the broader bullish trend remains intact, keeping the focus on a potential move toward $690 and, if momentum strengthens further, $987.