Key points:

• Zcash The trading price on Tuesday was around $1,348, maintaining the moderate increase that began on Sunday.
• NU7 is already running on the public test network, with the mainnet launch date set for October 20th and the target deployment time being November 5th.
• Kinetic energy improves the prospects for a rebound, but ZEC still needs to break through the resistance level of around $1,377 to $1,384.

Zcash On Tuesday, it consolidated below $1,348, maintaining the modest gains since Sunday. Investors are assessing the slowdown in ETF redemptions as well as the progress of the next network upgrade.

The short-term prospects for this privacy-focused cryptocurrency are mixed. The momentum indicators are improving, but its price is still below two important moving averages on the four-hour chart.

At the same time, the smaller scale of redemptions from Zcash under Grayscale indicates that the redemption pressure has eased to some extent.

The slowdown in capital outflows, combined with the progress of upgrades, has created a more favorable backdrop for a rebound. However, a sustained price breakthrough has not yet occurred.

NU7 Testing faster block generation and revised mining rewards

The NU7 upgrade of Zcash is currently running on the public test network. Developers plan to decide on whether to activate it on the main network on October 20th, with November 5th still being the target deployment date.

This upgrade will reduce the target block interval from 75 seconds to 25 seconds. Producing blocks more frequently may shorten the confirmation wait time, but this does not mean that each transaction will be completed nearly three times as quickly.

The actual block interval and the confirmation requirements set by various services are still very important.

NU7 has also introduced a network sustainability mechanism, redirecting 60% of transaction fees back into future mining rewards. Another change restricts shielded operations to help reduce junk transactions on the network.

If activated on the mainnet, this upgrade will disable the old versions of Sprout and v4 transactions. Users who still have funds remaining in these pools need to transfer them out before then in order to continue spending through the existing system.

These changes are still in the testing phase, and their potential benefits have not yet been deployed to the real-time network of Zcash.

According to SoSoValue data, the ZCSH fund of Grayscale recorded a net outflow of approximately $3.57 million on Monday.

In the previous week, a total of $93.56 million flowed out of the fund, with the outflow on three trading days exceeding $25 million each.

The smaller redemption volume on Monday represented an improvement compared to these single-day outflows. However, comparing a single trading day with the data for the entire week does not indicate how this week will ultimately conclude.

The momentum for improvement meets resistance from above.

On the four-hour chart, ZEC is still below the 50-week and 100-week exponential moving averages, which are approximately $1,377 and $1,384 respectively.

This area constitutes the current resistance zone. If we can consistently remain above these two moving averages, the short-term trend will improve, and the level of $1,422 – the low point lost on September 18th – will once again come into focus.

Looking further up, the high point of $1,679 on September 23 serves as an even more distant reference for upward movement.

The momentum indicator brings some encouragement. MACD has crossed above the signal line, and the bar chart has expanded into the positive territory.

The Relative Strength Index is close to 50, indicating neutral overall momentum. The analysis also points out the presence of a bullish divergence, suggesting that the selling pressure may be weakening, but price confirmation is still needed.

The rising 200-week period EMA is currently near $1,281, serving as a reference for immediate support below the current consolidation range.

Maintaining this level will preserve the possibility that the recent weakness is just a pullback within a larger-scale rebound. If it continues to fall below this level, then this assessment will be weakened, and the next support level mentioned, which is $1,050, will become exposed.

Currently, Zcash is still between an ascending support moving average and upper resistance levels. A slowdown in ETF's redemption efforts and an improvement in momentum are conducive to a rebound, but a breakthrough above $1,377 to $1,384 would provide a more definitive bullish signal.