Zcash was trading near $1,348 on Tuesday as investors weighed easing outflows from Grayscale’s Zcash-focused ZCSH fund against resistance levels that continue to cap the token’s recovery.
ZCSH recorded approximately $3.57 million in net outflows on Monday, according to SoSoValue data. That was substantially below the fund’s $93.56 million in withdrawals during the previous week, which included three sessions with outflows above $25 million. The improvement points to reduced redemption pressure, although it does not yet confirm a return to sustained demand.
NU7 moves closer to a mainnet decision
Meanwhile, Zcash’s NU7 upgrade is running on the public testnet. Developers are scheduled to decide on mainnet activation on October 20, with deployment currently targeted for November 5.
The upgrade would reduce Zcash’s targeted block interval from 75 seconds to 25 seconds. That change could shorten confirmation waits, although actual transaction speed would still depend on block production and the confirmation policies used by individual services.
NU7 also includes a Community Sustainability Mechanism that would direct 60% of transaction fees toward future mining rewards. In addition, the upgrade changes shielded transaction rules to help limit network spam. If deployed, it would disable legacy Sprout version 4 transactions, requiring users with funds in that pool to move them beforehand if they want to retain spending access.
These changes remain under testing and have not yet been activated on Zcash’s live network.
Technical resistance remains in focus
ZEC’s recent gains have improved short-term momentum, but the token remains below its 50-period and 100-period exponential moving averages on the four-hour chart, located at roughly $1,377 and $1,384. A sustained move above that $1,377-$1,384 zone would strengthen the recovery structure and put the broken September 18 low near $1,422 in focus. The September 23 high at $1,679 would represent a more distant upside reference.
Momentum indicators are showing tentative improvement. The Moving Average Convergence Divergence indicator has crossed above its signal line, while its histogram has moved into positive territory. The Relative Strength Index is near 50, reflecting broadly neutral momentum, and an identified bullish divergence suggests selling pressure may be weakening.
On the downside, the rising 200-period EMA near $1,281 is the immediate support reference. Holding that level would keep open the possibility that the latest weakness is part of a broader recovery. A sustained break below it could expose support near $1,050.
For now, Zcash remains positioned between rising support and significant overhead resistance. Slower fund outflows and improving momentum offer a more constructive backdrop, but a decisive break above $1,377-$1,384 is still needed to confirm a stronger bullish move.
