Zcash Forecast: ZEC Near $1,282 as Open Interest Climbs to 2.17M

Zcash (ZEC) extended its recovery on Wednesday, trading near $1,282 after rising about 7% in the previous session. Renewed activity in derivatives markets and anticipation of the upcoming Network Upgrade 7 (NU7) are supporting sentiment, even as investment products tracking ZEC continue to record withdrawals. The rebound has also coincided with weakness in the US Dollar following the US midterm elections, helping risk-sensitive assets. Still, traders face a key technical test: ZEC must clear resistance near $1,340 to confirm a breakout from its month-long trading range.

Retail positioning rises ahead of NU7

Zcash is attracting renewed speculative interest as traders position ahead of its scheduled network upgrade. Data from CoinGlass shows ZEC futures open interest increased to 2.17 million ZEC on Wednesday, up from 1.96 million on Sunday. Open interest measures the total number of outstanding derivatives contracts. Its increase alongside a rising price suggests that traders are adding positions, although the metric does not reveal whether every new position is bullish.

The upcoming NU7 upgrade provides another potential catalyst. Zcash developers are targeting November 5 for mainnet activation. According to the Zcash Foundation, the upgrade is designed to reduce target block times from 75 seconds to 25 seconds and introduce changes to the network’s fee and reward mechanisms. The activation date is tied to a specified block height, so the timing remains subject to the network reaching that milestone.

The broader market recovery has also helped ZEC. A weaker dollar can improve demand for risk-sensitive assets, including cryptocurrencies, although election developments alone do not establish the cause of a price move.

ETF withdrawals contrast with price recovery

Institutional flows tell a less optimistic story. ZEC-focused investment products recorded consecutive daily redemptions earlier in the week, with the supplied figures showing outflows of $3.58 million and $3.63 million. The withdrawals indicate that some investors reduced exposure even as the spot price recovered.

Recent flow trackers also show continued selling pressure in the Zcash ETF market. However, daily figures can vary by reporting source and publication time, so investors should distinguish between individual fund flows and aggregate product totals.

This divergence matters. Rising open interest may reflect growing speculative activity, while ETF redemptions suggest institutional demand has not yet fully recovered. Neither indicator alone determines the next price direction.

$1,340 breakout remains the key test

ZEC traded near $1,282, above its 50-day Exponential Moving Average at approximately $1,209 and its 200-day EMA near $850. The position above both averages supports a constructive longer-term structure.

The immediate challenge is the trading range established between $1,112 and $1,340. A daily close above $1,340 would provide stronger evidence of a breakout and bring the September 26 peak near $1,698 into focus.

Momentum indicators are improving. The daily MACD has crossed above its signal line, while the RSI near 53 sits modestly above its neutral midpoint of 50.

Key levels to monitor:

• Resistance: $1,340, followed by $1,698.
• Support: $1,209, then $1,112.

Conclusion

Zcash’s recovery is supported by rising derivatives activity, improving momentum and anticipation of NU7. But ETF outflows show that institutional demand remains uneven. A daily close above $1,340 would strengthen the bullish case; failure to break that ceiling could leave ZEC consolidating, with $1,209 the first important support to watch.