Zcash (ZEC) recovered above $1,250 on Monday, as improving investor interest coincided with a significant shift in the debate over how the privacy-focused blockchain funds development. Josh Swihart, founder of the Zcash Open Development Lab (ZODL), has backed a compromise proposal to end the 8% block-reward allocation to Zcash Community Grants (ZCG). Meanwhile, exchange-traded fund (ETF) inflows and rising futures positioning suggest demand is returning. Traders are now watching the November 5 Network Upgrade 7 and resistance near $1,385.
Zcash Funding Proposal Gains Support
Swihart announced his support for a proposal from Zcash co-founders Sean Bowe and Zooko Wilcox-O’Hearn to discontinue ZCG’s automatic 8% share of block rewards. Under the compromise, the allocation would be redirected toward a proposed Future Development and Legal Defense Fund, while existing treasury resources would continue supporting approved grants.
The proposal also calls for ZCG to contribute 50,000 ZEC to the Network Sustainability Mechanism. The arrangement is intended to change how future development is financed without immediately shutting down ongoing grant activity. However, the funding change remains a proposal rather than an implemented network rule.
The debate comes ahead of Network Upgrade 7 (NU7), scheduled for November 5. The upgrade is expected to reduce Zcash’s target block interval from 75 seconds to 25 seconds, potentially shortening average confirmation waits. It will also disable legacy Sprout-pool transactions. Developers have published supporting software ahead of the planned activation.
ETF Inflows and Futures Interest Recover
Investor positioning has also improved. Zcash investment products recorded approximately $17.72 million in net weekly inflows, according to the figures cited in the market report, although an outflow of more than $4 million on Friday reduced the weekly total. The renewed inflows followed several weeks of withdrawals.
Futures activity offers another indication of returning interest. Data from CoinGlass showed ZEC futures open interest rising to approximately 1.99 million ZEC on Monday, from 1.96 million the previous day. Open interest measures outstanding derivative contracts and can indicate whether traders are adding positions. It does not, by itself, establish whether those positions are bullish or bearish.
ZEC Price Forecast: $1,385 in Focus
ZEC was trading near $1,257 in the supplied four-hour chart snapshot. The price had moved back above its 50-period and 200-period exponential moving averages (EMAs), near $1,250 and $1,240, respectively. These levels form the first support area.
Zcash Price Chart – Source: Tradingview
The Relative Strength Index (RSI) was around 50, indicating neutral momentum, while the MACD remained below its signal and zero lines.
Key levels include:
- Resistance: $1,385, the October 6 high.
- Upside targets: $1,493 and $1,644, based on Fibonacci extensions.
- Initial support: $1,250 and $1,240.
- Deeper support: $1,215 trendline area and $1,205.
Conclusion:
Zcash’s recovery has support from renewed fund inflows, stronger futures participation and the approaching NU7 upgrade. A sustained move above $1,385 would strengthen the bullish outlook, while a decline below the $1,240 support area could undermine the recovery. Governance changes remain a separate uncertainty until the funding proposal is formally approved.
Sources & Methodology
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