Zcash trades sideways as macro risks persist, CPI in focus

The NU7 network upgrade for Zcash went live on November 6, marking a significant milestone. Block time was cut from 75 to 25 seconds, speeding up private transactions. Transaction fee allocation was also adjusted to bolster future mining rewards.

Developers are reportedly considering an NU7.1 upgrade to cut block times further to 20 seconds. While these technical improvements are supportive, macroeconomic and geopolitical factors continue to influence ZEC's price movements in the near term.

Positive news on a potential US-Iran agreement emerged yesterday, raising expectations, but no firm deal has materialized.

Attention turns to the US CPI release today. Year-over-year data will be missing due to the government shutdown last year, so the core month-over-month figure will be key.

Fed Governor Waller indicated he would back a rate increase in December even if October inflation shows improvement. He added that a core CPI reading of 0.3% or above could warrant a 50 basis point hike.

A more aggressive Federal Reserve, combined with ongoing conflict in Iran, is expected to pressure Zcash and the broader cryptocurrency market.

ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAME

Zcash rejected the 1,380 resistance and gave back most of the prior week's gains. The price is range-bound between support at 1,031 and resistance at 1,380. A move to support could attract buyers with defined risk below that level, aiming for a rebound to resistance. Sellers are eyeing a break below support to target the upward trendline near 800.

ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

A downward trendline on the 4-hour timeframe signals bearish momentum. On a pullback, sellers are likely to defend the trendline with risk above it, aiming for support. Buyers require a break above the trendline to target resistance.

ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

On the 1-hour timeframe, sellers have a favorable risk-reward near the trendline, while buyers need a break above the trendline or a drop to support.

UPCOMING CATALYSTS

The US CPI report is due today. Thursday brings jobless claims data, and Friday rounds out the week with PPI figures.