Zcash (ZEC) is trading around $1,253 on Monday, extending its recovery above the $1,250 level as market participants focus on the upcoming Network Upgrade 7 (NU7) and a revised proposal for development funding. The privacy-focused cryptocurrency has seen renewed inflows into investment products and a modest rebound in futures positioning, suggesting that selling pressure may be easing.
NU7 Upgrade and Funding Proposal
NU7, scheduled for November 5, is expected to reduce Zcash's block interval from 75 seconds to 25 seconds, enabling faster transaction confirmations. The upgrade will also disable the legacy Sprout pool and its transactions, marking a significant technical milestone for the network.
In parallel, Zcash Open Development Lab founder Josh Swihart has expressed support for a compromise proposal put forward by Zcash co-founders Sean Bowe and Zooko Wilcox-O'Hearn. The plan would end the 8% block reward allocation currently directed to Zcash Community Grants (ZCG) and instead channel those funds into a proposed Future Dev and Legal Defense Fund lockbox. Under the arrangement, ZCG would contribute 50,000 ZEC to the Network Sustainability Mechanism, while existing grants would continue to be funded from its current treasury.
While the proposal is not yet finalized, Swihart's endorsement adds momentum to the ongoing discussion about long-term network development funding.
Investment Flows and Derivatives Data
According to SoSoValue data, Zcash-linked investment products recorded $17.72 million in inflows last week, following $41.09 million the previous week. These inflows come after three consecutive weeks of outflows that followed a late-September 3-for-1 share split. The return of inflows suggests that selling pressure may be easing, although two positive weeks are not enough to establish a lasting change in demand.
In derivatives markets, CoinGlass data shows ZEC futures open interest at $2.54 billion, up from $2.47 billion on Sunday and $2.3 billion on Saturday. However, this remains below Tuesday's 2.18 million ZEC, indicating that the rebound is best viewed as a partial recovery in positioning rather than a full return of speculative demand.
Price Levels and Technical Outlook
On the daily chart, ZEC is holding above a rising trendline connecting the October 18 and October 30 lows, with trendline support near $1,215. Buyers have also reclaimed the 50-period exponential moving average (EMA) at $1,250 and the 200-period EMA at $1,240. The Relative Strength Index (RSI) sits at 50, indicating neutral momentum, while the Moving Average Convergence Divergence (MACD) remains subdued below its signal and zero lines. Together, these indicators point to improving stability rather than a decisive bullish breakout.
The first major upside hurdle is $1,385, a resistance level that has held since October 6. A sustained move above it could bring Fibonacci extension levels around $1,493 and $1,644 into view, based on the decline from $1,385 to the October 18 low at $1,049.
If the rebound stalls, the 50-period and 200-period EMAs at $1,250 and $1,240 form the nearest support area. Below that, the rising trendline around $1,215 and the 50% retracement near $1,205 could offer another opportunity for buyers to step in. A sustained move below those levels would weaken the short-term recovery case.
For now, Zcash has several potential catalysts, but traders still need to see whether the recent buying can carry the price through $1,385 rather than simply hold it above nearby support.
This article is for informational purposes only and does not constitute financial advice.
