Zcash gains amid market rout as NU7 upgrade goes live: analysis

Zcash demonstrated notable strength during the broader crypto market selloff on Wednesday. The recently activated NU7 network upgrade may have contributed to this resilience. The upgrade cuts block times from 75 seconds to 25 seconds, which makes transactions three times quicker.

The upgrade also phases out older Sprout transaction pools and introduces a Network Sustainability Mechanism designed to ensure the network's long-term financing. This development marks a significant step forward for Zcash.

However, macroeconomic headwinds are expected to keep a lid on further gains. The Democratic Congress is anticipated to constrain fiscal expansion, impose stricter regulations and place limits on AI infrastructure. Given that the US economy is tied to AI investment, this could result in slower economic growth and weigh on risk appetite.

The US-Iran situation remains an unpredictable factor. A diplomatic breakthrough would benefit Zcash by improving the growth outlook and risk sentiment. Conversely, an escalation would likely cause another selloff amid rising growth concerns and safe-haven flows, though such a selloff might be brief if Trump launches limited strikes to save face before withdrawing from the conflict.

ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME

On the daily chart, Zcash is nearing the major resistance zone around 1,380. If the price reaches that area, sellers are expected to step in with a defined risk above the resistance, positioning for a decline to the 1,031 support. Conversely, buyers will look for a breakout higher to increase bullish bets toward the 1,692 level.

ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

On the 4-hour chart, an upward trendline defines the bullish momentum heading into resistance. Buyers are expected to continue using the trendline with a defined risk below it to push into new highs. Sellers, meanwhile, will seek a break below the trendline to pile in for a drop toward the 1,031 support.

ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

On the 1-hour chart, there is little new to add: buyers will keep leaning on the trendline to target new highs, while sellers wait for a break below the trendline or a rally into the resistance to position for new lows. The red lines mark the average daily range for today.

UPCOMING CATALYSTS

This week concludes with the US NFP report and the University of Michigan Consumer Sentiment survey.