# Zcash Finds Support Near $1,350 as NU7 Testnet Activation and Slowing ETF Outflows Bolster Sentiment > Zcash is holding firm around $1,348 following the public testnet activation of its NU7 upgrade, which triples transaction speeds, alongside a steep drop in Grayscale ETF outflows to $3.50 million. **Type:** article · **Category:** Crypto · **Published:** 2026-10-06 · **Source:** TrendKia **Canonical:** https://trendkia.com/en/crypto/zcash-ke-nu7-testaneta-apagreda-aura-ghatate-etf-autaphlo-se-mila-sahara-1-350-dolara-ke-kariba-pahunchi-kimata-43648 · **Language:** English **Tags:** Zcash, Cryptocurrency, NU7 Upgrade, Grayscale ETF, ZEC Price, Blockchain Technology, finance Privacy-focused cryptocurrency Zcash maintained positive momentum on Tuesday, consolidating around the $1,350 mark after rebounding 3% on Sunday. The asset traded near $1,348 at press time, preserving its recent floor as network-level upgrades and a sharp reduction in institutional sell-offs provided relief to spot markets. Two significant fundamental tailwinds are supporting the price: the successful deployment of the NU7 upgrade on the public testnet and an abrupt drop in redemption pressure from Grayscale's dedicated fund. ## NU7 Testnet Deployment Triples Processing Speeds On Monday, developers deployed the NU7 network upgrade onto the public testnet, marking a critical milestone toward mainnet activation. The core advancement in NU7 is the reduction of block confirmation times from 75 seconds down to 25 seconds, effectively tripling settlement speeds across the chain. According to project schedules, a definitive decision on mainnet implementation is set for October 20, targeting full launch on November 5. Beyond speed improvements, NU7 integrates a Network Sustainability Mechanism that reallocates 60% of network transaction fees toward future mining and validator rewards. To curb spam and network bloat, the upgrade also enforces restrictions on shielded operations. Once active on the mainnet, NU7 will formally retire obsolete Sprout v4 transaction structures, rendering any funds remaining in that legacy shielded pool permanently unspendable. ## Institutional ETF Outflows Taper to $3.50 Million Market sentiment received a notable boost from institutional flow data. Grayscale's ZEC-focused exchange-traded product, trading under the ticker ZCSH, logged outflows of $3.57 million on Monday. This represents a drastic deceleration compared to the previous week, when institutional redemptions exceeded $25 million across three consecutive trading sessions, generating an aggregate outflow of $93.56 million. The sharp contraction in capital exits indicates that heavy institutional liquidation has cooled, paving the way for organic buying interest to reassert itself as privacy infrastructure improves. ## Technical Indicators Outline Key Moving Averages and Price Targets On the daily charts, Zcash hovers near $1,348, maintaining an overarching long-term upward trajectory despite short-term headwinds. The token experienced a minor technical setback after dipping below its clustered 50-period and 100-period Exponential Moving Averages (EMAs), which are positioned at $1,377 and $1,384, respectively. However, the ascending 200-period EMA at $1,281 continues to provide robust structural support, signaling that recent pullbacks remain corrective rather than structural trend reversals. Currently, ZEC is consolidating between the lower boundary of the 200-period EMA and the upper overhead ceiling formed by the 50-period and 100-period EMAs. A decisive closing push above the $1,384 barrier would eliminate immediate resistance and clear the path toward the broken September 18 low at $1,422. Beyond that level, bulls could set their sights on the September 23 peak at $1,679. Conversely, if downward pressure resumes, initial defense rests at the rising 200-period EMA of $1,281, followed by major secondary support at the September 4 swing high of $1,050. ## Momentum Divergence and Broader Crypto Market Backdrop Momentum oscillators are signaling underlying strength. The Moving Average Convergence Divergence (MACD) has crossed above its signal line while its histogram bars expand into positive territory. Concurrently, the Relative Strength Index (RSI) hovers around the 50 neutral mark but is printing higher local highs as the price tests the 200-period EMA, establishing a classic bullish divergence that supports further recovery. This consolidation takes place against a steady broader digital asset market. Bitcoin is holding ground above $86,000 following three straight weeks of gains above 12% since mid-September, supported by ongoing institutional demand in spot BTC funds. Ethereum is trading above $2,700, while Ripple (XRP) holds above $1.50 within a defined range between $1.45 support and $1.60 resistance. Live tracking registers XRP at $1.50, down 1.49% from its previous close of $1.52, with an RSI of 56 and daily ATR at 0.07. Concurrently, artificial intelligence-linked tokens, including Artificial Superintelligence Alliance, Virtuals Protocol, and NEAR Protocol, are posting strong 24-hour gains as liquidity rotates across sectors. ## What this means for you The technical restructuring of Zcash and tapering institutional outflows will improve on-chain speed and alter rules for legacy asset holders. - **For Crypto Investors:** Institutional redemption volume plunged from $93.56 million last week to just $3.50 million, removing acute downward selling pressure. Traders can evaluate the 200-period EMA at $1,281 as critical structural support against upside resistance at $1,422. - **For Legacy Pool Holders:** The pending mainnet upgrade will formally retire Sprout v4 transaction types and make old pools unspendable. Users holding unmigrated balances in legacy addresses must transfer their assets into modern shielded pools prior to the final deadline. - **For On-Chain Transactors:** Block settlement speeds will improve threefold as confirmation periods drop from 75 seconds to 25 seconds. Simultaneously, newly implemented shielded action caps will reduce spam transactions and ensure faster network clearance. - **For Network Miners:** The Network Sustainability Mechanism will channel 60% of all generated network fees into a dedicated future rewards pool. This reallocation ensures sustained long-term protocol funding and predictable reward structures. ## Why this happened A convergence of structural protocol advancements and an abrupt drop in institutional selling pressure helped Zcash stabilize around key moving averages. - **Immediate Driver:** The activation of the NU7 upgrade on the public testnet coincided with Grayscale ZCSH ETF redemptions slowing sharply to $3.57 million from over $93 million the prior week. This halted rapid institutional dumping and created a stable pricing floor. - **Network Bottlenecks:** Prior network versions suffered from longer 75-second block delays and vulnerable spam vectors within shielded pools. Upgrading to a 25-second block target and establishing fee reserves was designed to enhance operational sustainability. - **Upcoming Milestones:** Protocol maintainers will conduct the formal mainnet activation assessment on October 20, with target deployment scheduled for November 5. Price action now tests the critical 50- and 100-period EMAs before deciding a sustained trend toward $1,422. ## Questions & Answers ### 1. What is the Zcash NU7 upgrade and what does it improve? The NU7 upgrade reduces block times from 75 to 25 seconds for three-times faster settlements and allocates 60% of fees to future rewards. ### 2. When is the mainnet release scheduled for NU7? The mainnet implementation decision is slated for October 20, with target activation scheduled for November 5. ### 3. What happened with Grayscale Zcash ETF outflows recently? Outflows from Grayscale's ZCSH ETF slowed dramatically to $3.57 million on Monday after exceeding $93.56 million the previous week. ### 4. What are the primary support and resistance levels for Zcash? Immediate support sits at the 200-period EMA of $1,281, while overhead resistance clusters between $1,377 and $1,384. ### 5. What happens to the legacy Sprout v4 transaction pool after NU7? Once activated on the mainnet, the old Sprout v4 transactions will be retired, making unmigrated legacy pool balances permanently unspendable. --- _TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._