Zcash Price Forecast: NU7 upgrade bolsters breakout hopes as ZEC bucks crypto market sell-off

• 2% is Zcash’s gain on Friday. The coin remains above $1,300 as bulls target a move back above the $1,340 barrier.
• Friday’s scheduled launch of Zcash Network Upgrade 7 will enable 3x faster payments and disable v4 transactions.
• Derivatives figures signal a substantial accumulation of leveraged positions, even as a ZEC-focused ETF posted roughly $11 million in outflows on Thursday.

$1,300 remains intact for Zcash (ZEC) on Friday. The coin is resisting a broader cryptocurrency sell-off that triggered over $1 billion in liquidations the previous day. Its resilience coincides with Friday’s scheduled Network Upgrade 7 (NU7), designed to speed up payments and disable older transaction pools.

Nearly $11 million left Grayscale’s ZEC-focused Exchange-Traded Fund (ETF) on Thursday, signalling selling pressure from institutional investors. Elevated Open Interest, however, indicates substantial accumulation of leveraged positions. For the technical picture to turn bullish again, Zcash needs a confirmed break above horizontal resistance at $1,340.

$10.99 million in ETF outflows offset by Zcash derivatives demand ahead of Network Upgrade

Despite unsettled daily ETF flows, demand for Zcash derivatives remains robust. According to SoSoValue, Thursday’s outflows from Grayscale’s ZEC-focused ETF (ZCSH) reached $10.99 million, taking net outflows for the week so far to $14.77 million. The withdrawals indicate ETF share redemptions, suggesting weaker appetite for crypto against a backdrop of broader market uncertainty. 

Unless Friday brings sufficiently positive flows, ZCSH could end its run of two consecutive weeks of net inflows. Negative or only mildly positive flows could therefore put pressure on the privacy coin’s medium- to long-term prospects. 

Derivatives figures, by contrast, point to increasing trader interest in Zcash. CoinGlass reports that Zcash Open Interest (OI) has climbed from 2.05 million ZEC the previous day to 2.15 million ZEC. Positioning has thus returned to elevated levels following a modest contraction that coincided with the day of $1 billion in liquidations. 

This appetite for leveraged Zcash positions coincides with Friday’s scheduled NU7 upgrade, which is set to activate at block height 3,543,405. Block confirmation times will fall from 75 seconds to 25 seconds, allowing 3x faster payments. To bolster network security, the upgrade will also disable older v4 Sprout-shielded transaction pools. A Network Sustainability Mechanism (NSM) will temporarily divert 60% of transaction fees out of circulation and into a long-term NSM Value Balance. The aim is to sustain miner rewards as the base subsidy halves over time.

$1,340 resistance in focus: Zcash’s bullish breakout outlook

At $1,308 at press time on Friday, Zcash is testing resistance around $1,340, established by the 8 October high. The technical picture remains one of consolidation, bounded below by support around $1,112 at the 8 October low.

The underlying trend structure nevertheless remains supportive, with a constructive near-term bias. ZEC is above its 50-day Exponential Moving Average (EMA) of $1,216, while that average remains well above the 200-day EMA at $856. Confirmation of a break above $1,340 could open the way to the 26 September peak of $1,698, representing potential upside of over 25%.

Daily momentum indicators retain a mildly positive tone. The Relative Strength Index (RSI) is near 55, while the Moving Average Convergence Divergence (MACD) remains above its signal line, indicating that bullish pressure persists.

Any pullback would first bring the 50-day EMA near $1,216 into focus as notable support. That level is underpinning the latest advance; a more pronounced decline would put the $1,112 support floor at risk.

(The technical analysis of this story was written with the help of an AI tool. Know more.)