Zcash rebounds as risk mood improves, but macro and technical dangers remain

Zcash bounced off its recent lows as risk appetite firmed a touch, with oil prices sliding after Trump waived several Russian sanctions over the weekend. ZEC remains exposed to a deteriorating macro backdrop, and sustained high energy prices plus the latest growth worries are still putting pressure on the crypto market.

The NU7 network upgrade is nearing a decisive juncture, as developers are expected to decide tomorrow whether to activate the mainnet. The upgrade is targeting November 5 and would sharply cut block times while also changing the network's sustainability mechanism. Confirmation of the November 5 rollout could give ZEC a short-term lift, while problems in testing or a postponement could leave traders disappointed.

Unless macro conditions improve further, the recent bounce may struggle to hold its momentum. The key data point this week is Friday's US Flash PMIs, which should offer a read on whether growth concerns are justified.

Stronger-than-expected figures could ease those worries and support ZEC in the short term, whereas a weak report could pile fresh pressure onto the cryptocurrency.

Daily Timeframe: Zcash Technical Analysis

ZEC could not quite reach the key 1,031 level, rebounding before touching that mark. Should another pullback arrive at that zone, buyers could step in with a defined risk below it and aim for a rally toward 2,000. Sellers, on the other hand, would wait for a break lower to add bearish bets, targeting 800.00 next.

4-Hour Timeframe: Zcash Technical Analysis

A falling trendline is defining the bearish momentum. Sellers can be expected to lean on that line, with risk placed above it, while pressing for new lows. Buyers, meanwhile, would look for a break higher to build bullish positions, targeting 2,000 with 1,351 acting as the initial target.

1-Hour Timeframe: Zcash Technical Analysis

There is little to add at this stage: sellers have the better risk-reward setup around the descending trendline, while buyers would need a breakout before new highs can be aimed for.

Catalysts Ahead

Thursday brings the latest US Jobless Claims figures, and Friday wraps up the week with the Flash US PMIs.