
Bullish sentiment is returning to Zcash (ZEC), with the token holding above $1,200 on Wednesday after a 9% recovery the previous day linked to the forthcoming NU7 upgrade. A report on Zcash holders published by Blockworks on Tuesday pointed to sustained network growth. Technical indicators also favour the upside, with bulls targeting a further advance towards $1,698.

November 6 at 00:50 GMT has been set for the NU7 upgrade’s final mainnet activation, according to a decision announced by Zcash Open Development Lab. The upgrade aims to cut block confirmation time from 75 seconds to 25 seconds, increasing transaction speed by 3x. It also retires the legacy v4 transaction pool, suspending the ZEC tokens held in the Sprout shielded pool, and introduces the Network Sustainability Mechanism (NSM). Under this mechanism, 60% of fees will go to the NSM Value Balance, with the remainder directed to miners.

Following three successive weeks of heavy selling, institutional investors continue to face pressure. However, SoSoValue data indicates a positive near-term shift: Bitwise’s ZEC-focused Exchange Traded Fund (ETF) attracted $1.61 million on Tuesday after outflows of $10.45 million on Monday. Weekly figures also point to easing institutional selling pressure, with total outflows dropping sharply from $93.56 million in early October to $19.15 million last week.

Meanwhile, figures from Blockworks indicate that transactions on the network increased by 21% over the last three months to roughly 710,000, more than half of which were non-shielded. The network’s Real Economic Value (REV) also advanced by almost 85%, reaching $204,000.

The near-term bias remains bullish as Zcash changes hands at $1,260 at the time of writing on Wednesday. On the four-hour chart, ZEC remains above its 50- and 200-period Exponential Moving Averages (EMAs), positioned at $1,181 and $1,230, respectively.
The previous day’s 9% recovery has taken the price through the descending resistance trendline, strengthening the bullish structure as that line now provides support around $1,183. Zcash is currently testing horizontal resistance at $1,296, marked by the September 9 high. A confirmed break above this level could carry the rally towards the September 26 peak of $1,698.
Buying pressure appears sustained rather than exhausted: the four-hour Relative Strength Index (RSI) stands near 65, and the Moving Average Convergence Divergence (MACD) line continues to trend upwards in positive territory.
Should the price retreat, the first support lies at $1,230, the 200-period EMA. Below that, a structural support zone is formed by the former resistance trendline breakout near $1,183 and the 50-period EMA at $1,181.
(The technical analysis of this story was written with the help of an AI tool. Know more.)