Zcash is facing renewed selling pressure as weakening derivatives activity and broader crypto market losses contrast with continued investment fund inflows. With the NU7 network upgrade approaching, traders are watching whether the planned changes can sustain interest in ZEC despite growing bearish signals.
ZEC fell 5.8% in 24 hours to $1,158.68, dropping below the $1,176 support level, according to CoinMarketCap. At the same time, futures open interest fell 12.45%, suggesting traders are reducing their market exposure. However, Zcash investment funds still attracted about $20.52 million in daily inflows.
These mixed signals raise concerns about whether Zcash’s rally is losing momentum despite continued interest from investors.
The decline also came as the wider crypto market weakened. Total crypto market value fell 1.58%, while Bitcoin dropped 1.23%. Rising oil prices, inflation fears and falling technology stocks added to market pressure.
ZEC also fell below key technical levels, including $1,186 and its seven-day and 30-day moving averages. This suggests its short-term price momentum is weakening.
Zcash is approaching a support zone between $1,109 and $1,176.
- If support holds: ZEC could trade between $1,110 and $1,270.
- If the price falls below $1,109: It could drop toward $1,050.
- For a recovery: ZEC needs to move back above $1,186-$1,200, with further resistance between $1,219 and $1,250.
Another derivatives report showed ZEC trading at $1,167.64, down 4.58% in 24 hours. Traders with short positions reportedly made about $15.4 million in profits over the previous day. Short positions also accounted for more than 90% of the reported exposure among top traders on major perpetual futures exchanges for several days.
Essentially, Zcash faces growing selling pressure and weakening momentum. While continued investment fund inflows suggest some investors remain interested, the price trend and derivatives data point to stronger bearish sentiment.
On Friday, Zcash funds attracted about $20.52 million in daily inflows, bringing the weekly inflows to $42.09 million, even as futures trading weakened.
This suggests that some investors are still interested in Zcash, while derivatives traders are reducing their exposure or betting on lower prices.
For now, ZEC’s falling price and weakening technical indicators suggest that a recovery may be difficult despite continued fund inflows.
Zcash is preparing for its upcoming NU7 network upgrade. 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. It will reduce the target time between blocks from 75 seconds to 25 seconds, making the average wait for the first transaction confirmation about three times shorter.
Other planned changes include:
- Network sustainability: 60% of transaction fees will be removed from circulation and placed in a reserve.
- Higher shielded transaction limits: This will expand support for private transactions.
- Better light-wallet performance: Improvements will help reduce spam-related demands on light wallets.
- Unchanged supply cap: Zcash will retain its maximum supply of 21 million ZEC.
The upgrade could attract renewed interest in Zcash, but it doesn’t guarantee a reversal of the current price decline.
In the short term, traders are watching whether ZEC can hold the $1,109–$1,176 support zone. A move above $1,186– $1,200 could signal early signs of recovery, while a drop below $1,109 could push the price toward $1,050.
Related: Zcash Price Prediction: Can ZEC Reach $1,400 as Winklevoss Sees $5,000?
