Zcash holds near $1,300 as NU7 upgrade fuels bullish momentum

Key takeaways

• Zcash (ZEC) is trading around $1,300 on Friday, demonstrating relative strength while the wider cryptocurrency market struggles.
• Grayscale’s ZEC-focused fund (ZCSH) recorded $10.99 million in net outflows on Thursday, pushing weekly redemptions to $14.77 million.
• ZEC faces immediate resistance at $1,340; a confirmed breakout could open the path toward $1,698, while key support levels stand at $1,216 and $1,112.

Zcash (ZEC) maintained its firm footing near $1,300 on Friday, outperforming major digital assets as the broader market attempted to recover from a sharp selloff that triggered over $1 billion in derivative liquidations a day earlier.

The privacy-oriented cryptocurrency traded near $1,290, bolstered by anticipation surrounding its Network Upgrade 7 (NU7), scheduled to go live on Friday.

The NU7 update brings major technical changes to the Zcash network, including faster block confirmations, the retirement of legacy shielded transaction pools, and a newly implemented framework designed to promote long-term network sustainability.

Institutional investment trends present a contrasting narrative. Grayscale’s ZEC-focused Exchange-Traded Fund (ETF), trading under the ticker ZCSH, registered nearly $11 million in net outflows on Thursday, bringing total weekly withdrawals to $14.77 million.

Despite the weakness in ETF flows, engagement in the derivatives market expanded, with Zcash futures Open Interest climbing to 2.15 million ZEC.

From a technical standpoint, ZEC must clear resistance at $1,340 to reinforce its bullish outlook and extend its recovery momentum toward $1,698.

Zcash defies crypto market selloff ahead of NU7 upgrade

Zcash has displayed notable resilience despite a general market downturn across digital assets.

The broader decline drove more than $1 billion in derivatives liquidations on Thursday as investors reduced their exposure to risk-sensitive crypto assets.

Leading tokens including Bitcoin and Ethereum, along with several major altcoins, suffered significant price declines amid heightened market uncertainty.

ZEC, however, continued trading around the psychological $1,300 threshold, drawing support from growing market attention on its NU7 upgrade.

Set for activation at block height 3,543,405, the upgrade incorporates fundamental technical modifications intended to improve overall network efficiency and sustainability.

The upcoming activation has served as a potential driver for traders seeking opportunities independent of the broader market decline.

However, institutional appetite for Zcash-focused financial products has faltered despite the asset’s price stability.

According to data from SoSoValue, Grayscale’s ZCSH ETF recorded $10.99 million in net outflows on Thursday.

Those redemptions pushed cumulative weekly net outflows to $14.77 million, indicating that ETF investors have been actively paring back their Zcash exposure.

Zcash technical analysis: $1,340 resistance holds the key

Zcash’s daily chart reflects price consolidation beneath a prominent horizontal resistance barrier.

Trading around $1,290, ZEC remains constrained below the $1,340 resistance level established by the October 8 peak—a barrier that continues to restrict buyers from driving a stronger recovery.

A decisive daily close above $1,340 could trigger a bullish breakout from the existing consolidation range. Such a breakout could invite additional buying pressure, shifting technical targets toward the September 26 high of $1,698.

Conversely, the bullish case hinges entirely on a verified breakout and follow-through buying. A failure to clear $1,340 could keep ZEC range-bound.

The lower bound of this current range sits near $1,112, corresponding to the low established on October 8.

Despite the overhead resistance, Zcash’s broader technical layout remains constructive.

The token continues to trade above its 50-day Exponential Moving Average (EMA), which currently sits around $1,216.

Furthermore, the 50-day EMA remains well above the 200-day EMA at approximately $856, indicating that the prevailing underlying trend still favors the upside despite short-term consolidation.

Momentum indicators also lean positive. The daily Relative Strength Index (RSI) stands around 53, maintaining a position above the neutral 50 mark.

Simultaneously, the Moving Average Convergence Divergence (MACD) line remains above its signal line, signaling that upside momentum remains intact.

Together, these technical signals indicate that ZEC retains the capacity for another push higher if buyers can push past the $1,340 ceiling.

Zcash’s next major price move hinges largely on whether buyers can secure a close above $1,340.

A sustained breakout would clear the path toward the September 26 high at $1,698.

However, if ZEC fails to reclaim $1,340, attention will likely turn to nearest support levels. The primary downside marker is the 50-day EMA near $1,216.

A breakdown below $1,216 would weaken the near-term bullish setup, bringing the $1,112 support level into focus. Dropping below $1,112 would signal a more pronounced structural decline.

For the moment, ZEC holds a constructive bias above key moving averages, though the $1,340 resistance remains the main hurdle to further upside.