Key Takeaways
- • ZEC fell 5.8% in 24 hours to $1,158.68, dropping below the $1,176 support level, according to CoinMarketCap, even as Zcash investment funds recorded $20.52 million in daily inflows and $42.09 million in weekly inflows.
- • Futures open interest fell 12.45%, signaling traders are reducing market exposure, while short positions reportedly earned about $15.4 million in profits over the prior day.
- • Short positions accounted for more than 90% of reported exposure among top traders on major perpetual futures exchanges for several days, per the article.
- • The NU7 network upgrade, expected around November 5 at block height 3,543,405, cuts block target time from 75 to 25 seconds and removes 60% of transaction fees from circulation into a reserve, but does not guarantee a price reversal.
- • Key levels to watch: support at $1,109-$1,176; a break below $1,109 could push ZEC toward $1,050, while recovery requires a move above $1,186-$1,200.
Summary
Zcash (ZEC) is under renewed selling pressure, with its price falling 5.8% in 24 hours to $1,158.68 and dropping below the $1,176 support level, according to CoinMarketCap. The decline occurred despite continued investor interest in Zcash-linked investment funds, which attracted about $20.52 million in daily inflows on Friday and $42.09 million over the week. The divergence between fund flows and market activity is the central tension in the story.
Derivatives data point to weakening demand. Futures open interest fell 12.45%, suggesting traders are reducing exposure. A separate derivatives report showed ZEC trading at $1,167.64, down 4.58% in 24 hours, and said short traders made roughly $15.4 million in profits over the previous day. Short positions also made up more than 90% of reported exposure among top traders on major perpetual futures exchanges for several days.
The broader market weakened as well. Total crypto market value fell 1.58% and Bitcoin dropped 1.23%, with rising oil prices, inflation concerns and falling technology stocks adding pressure. ZEC has also fallen below its $1,186 level and its seven-day and 30-day moving averages, which the article says signals weakening short-term momentum. Technical levels cited include support between $1,109 and $1,176, with a possible move to $1,110-$1,270 if that zone holds, a decline toward $1,050 if it breaks, and resistance at $1,186-$1,200 and further at $1,219-$1,250.
The NU7 upgrade is the main near-term catalyst. On October 22, the Zcash Foundation announced Zebra 7.0.0, the first stable release supporting NU7 on Mainnet. The upgrade is expected around November 5 at block height 3,543,405 and will reduce target block time from 75 seconds to 25 seconds, which the article says makes average first-transaction confirmation about three times shorter. Other changes include removing 60% of transaction fees from circulation into a reserve, higher shielded transaction limits, improved light-wallet performance, and an unchanged 21 million ZEC supply cap. The article notes the upgrade could renew interest but does not guarantee a reversal of the current decline.
Derivatives data point to weakening demand. Futures open interest fell 12.45%, suggesting traders are reducing exposure. A separate derivatives report showed ZEC trading at $1,167.64, down 4.58% in 24 hours, and said short traders made roughly $15.4 million in profits over the previous day. Short positions also made up more than 90% of reported exposure among top traders on major perpetual futures exchanges for several days.
The broader market weakened as well. Total crypto market value fell 1.58% and Bitcoin dropped 1.23%, with rising oil prices, inflation concerns and falling technology stocks adding pressure. ZEC has also fallen below its $1,186 level and its seven-day and 30-day moving averages, which the article says signals weakening short-term momentum. Technical levels cited include support between $1,109 and $1,176, with a possible move to $1,110-$1,270 if that zone holds, a decline toward $1,050 if it breaks, and resistance at $1,186-$1,200 and further at $1,219-$1,250.
The NU7 upgrade is the main near-term catalyst. On October 22, the Zcash Foundation announced Zebra 7.0.0, the first stable release supporting NU7 on Mainnet. The upgrade is expected around November 5 at block height 3,543,405 and will reduce target block time from 75 seconds to 25 seconds, which the article says makes average first-transaction confirmation about three times shorter. Other changes include removing 60% of transaction fees from circulation into a reserve, higher shielded transaction limits, improved light-wallet performance, and an unchanged 21 million ZEC supply cap. The article notes the upgrade could renew interest but does not guarantee a reversal of the current decline.
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