Zcash outperformed most cryptocurrencies following ETF launch, now focus shifts to Clarity Act and FOMC

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">Zcash has been rallying strongly since August after the Grayscale's Zcash ETF (ZCSH) began trading on NYSE Arca, giving investors direct ZEC exposure through traditional brokerage accounts. Historically, ETFs for cryptocurrencies have been bullish catalysts as they attracted more capital inflow. </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">Zcash is also increasingly being positioned as a scarce, Bitcoin-like asset with optional transaction privacy. Its 21 million supply cap and Proof-of-Work model strengthen the comparison with Bitcoin, while its privacy functionality differentiates it from BTC. </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">There was also an improvement in protocol security in July as the NU6.3/Ironwood upgrade replaced the old Orchard shielded pool with a new pool designed to improve supply integrity and security. </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">The combination of a US-listed ETF and improving protocol security has substantially changed ZEC's investment story. It is no longer simply a niche privacy coin, but increasingly an institutional-accessible bet on the privacy segment of crypto.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">CLARITY ACT VOTE</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">Looking ahead, we have the cloture vote on Clarity Act today at 2:15pm ET where 60 votes are needed to support opening debate on the legislation. As a reminder, the legislation seeks to provide the US crypto industry with a more defined regulatory framework. Greater regulatory clarity would be positive for the crypto market. If successful, the legislation could pave the way for stronger institutional participation, deeper market liquidity and additional capital entering the crypto market.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">A failed vote could close the legislative window for crypto market structure this year, given the November midterms. This outcome would likely be negative for Zcash and could trigger a selloff. But even a successful vote may not be positive. With the FOMC decision coming tomorrow, I’m afraid we could see a “sell the fact" reaction as traders shift their attention from the Clarity Act back to monetary policy and the negative macro picture.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/ZECUSD/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Zcash</a> has recently bounced from a major upward trendline. If we get another pullback into the trendline, we can expect the buyers to step in with a defined risk below the trendline to keep targeting new highs. The sellers, on the other hand, will look for a break lower to pile in for a drop into the 752.00 swing low next.  </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">On the 4 hour chart, we have a resistance zone around the 1,220 level where the price got rejected from a couple of times in the past week. If the price gets there, we can expect the sellers to step in around the resistance with a defined risk above it to target a break below the trendline. The buyers, on the other hand, will want to see the price breaking above the resistance to pile in for a rally into new highs.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;">ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor support zone around the 1,115 level where we got a few rejections in the past week. We can expect the buyers to step in there with a defined risk below the support to target a rally into the 1,220 resistance. The sellers, on the other hand, will look for a break to extend the pullback into the major trendline. </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 105%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Today</a>, we have the cloture vote onCLARITY Act. Tomorrow, we have the FOMC rate decision. On Thursday, we get the US Jobless Claims figures. Traders will also keep a close eye on developments in the Middle East.</p> This article was written by Giuseppe Dellamotta at investinglive.com.