Key takeaways
- Zcash (ZEC) trades around $1,300 on Friday, outperforming the broader cryptocurrency market.
- Grayscale’s ZEC-focused ETF (ZCSH) recorded $10.99 million in net outflows on Thursday, bringing weekly withdrawals to $14.77 million.
- ZEC faces immediate resistance at $1,340, with a confirmed breakout potentially opening the door toward $1,698, while $1,216 and $1,112 remain key support levels.
Zcash (ZEC) maintained its strength around $1,300 on Friday, outperforming major cryptocurrencies as the broader market struggled to recover from a selloff that triggered more than $1 billion in liquidations the previous day.
The privacy-focused cryptocurrency traded around $1,290, supported by anticipation surrounding its Network Upgrade 7 (NU7), scheduled for activation on Friday.
The upgrade introduces significant changes to Zcash’s blockchain, including faster block confirmations, the retirement of older shielded transaction pools, and a new mechanism intended to support the network’s long-term sustainability.
However, institutional investment flows present a contrasting picture. Grayscale’s ZEC-focused Exchange-Traded Fund (ETF) recorded nearly $11 million in net outflows on Thursday, while total weekly withdrawals reached $14.77 million.
Despite the ETF weakness, derivatives market participation has increased, with Zcash futures Open Interest rising to 2.15 million ZEC.
Technically, ZEC must overcome resistance at $1,340 to strengthen its bullish outlook and potentially extend its recovery toward $1,698.
Zcash defies crypto market selloff ahead of NU7 upgrade
Zcash has demonstrated relative strength despite a broad decline across cryptocurrency markets.
The wider selloff triggered more than $1 billion in derivatives liquidations on Thursday as investors reduced exposure to risk-sensitive assets.
Bitcoin, Ethereum, and several major altcoins recorded substantial losses, reflecting heightened market uncertainty.
However, ZEC continued trading around the psychological $1,300 level. The resilience coincides with growing attention surrounding the network’s NU7 upgrade.
Scheduled for activation at block height 3,543,405, the upgrade introduces several technical changes designed to improve network efficiency and sustainability.
The upcoming activation has provided a potential catalyst for traders seeking opportunities outside the broader market downturn.
Institutional demand for Zcash investment products has weakened despite the token’s relative price strength.
According to SoSoValue, Grayscale’s ZEC-focused ETF, trading under the ticker ZCSH, recorded $10.99 million in net outflows on Thursday.
The withdrawals pushed the fund’s cumulative weekly net outflows to $14.77 million. The latest figures suggest that investors using the ETF have been reducing their exposure to Zcash.
Zcash technical analysis: $1,340 resistance holds the key
Zcash’s daily chart shows the cryptocurrency consolidating beneath an important horizontal resistance level.
At approximately $1,290, ZEC remains below the $1,340 barrier established by the October 8 high. The level has emerged as a key obstacle for buyers attempting to extend the recent recovery.
A decisive daily close above $1,340 could signal a bullish breakout from the current consolidation range. Such a move may attract additional buying interest and shift attention toward the September 26 peak at $1,698.
However, the bullish scenario depends on a confirmed breakout and sustained buying momentum. Failure to overcome $1,340 could keep ZEC confined within its existing trading range.
The lower boundary of that range is positioned near $1,112, corresponding to the October 8 low.
Despite the resistance overhead, Zcash’s broader technical structure remains constructive.
The cryptocurrency trades above its 50-day Exponential Moving Average (EMA), currently positioned around $1,216.
The 50-day EMA also remains well above the 200-day EMA at approximately $856. This alignment suggests that the underlying trend continues to favor buyers, even as the token consolidates.
Momentum indicators provide additional support for the bullish outlook. The daily Relative Strength Index (RSI) stands near 53, above the neutral 50 threshold.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is positioned above its signal line, suggesting that bullish momentum remains intact.
Together, these indicators suggest that ZEC retains the potential for another upward move if buyers successfully overcome the $1,340 resistance level.
Zcash’s next significant price movement may depend on whether buyers can push the cryptocurrency above $1,340.
A sustained breakout could open the door toward $1,698, the previous peak recorded on September 26.
However, if ZEC fails to reclaim $1,340, traders may shift their attention toward nearby support levels. The first important downside level is the 50-day EMA around $1,216.
A sustained decline below $1,216 would weaken the near-term bullish outlook. The next major support would emerge at $1,112, the lower boundary of the current consolidation range.
A breakdown below that level could signal a more significant deterioration in market structure.
For now, ZEC remains in a relatively constructive position above its major moving averages, although resistance at $1,340 continues to limit upside momentum.
