Zcash Rebounds After Nearing $1,000 in Multi-Week Decline

Zcash price recovered toward $1,240 during Oct. 15 trading after several weeks of selling pressure. CoinMarketCap data cited in the market analysis showed an almost 8% daily increase following a decline to $1,077.

The recovery followed a correction of approximately 36% from ZEC’s September peak near $1,696. However, Santiment data showed that derivatives positioning and social engagement had weakened before the recent rebound.

Meanwhile, developers are preparing for an Oct. 20 decision on the NU7 network upgrade. The proposed changes include faster block confirmations and a new transaction-fee mechanism.

Zcash Price Recovers After Losing Most September Gains

Before the turnaround, Zcash was in a multi-week decline that began after it peaked above $1,650 on September 27. The peak resulted from a 48% gain over two weeks, starting September 16.

Since then, it has been in decline, handing back almost all the gains from the previous two weeks.

According to Santiment analysts, the major factor behind this decline was a general pullback in demand and interest in ZEC.

The token open interest, which peaked at 1.60 million ZEC, was 2.5% below its September 15 level by mid-October.

Social volume, which rose to 671 mentions during its rally, had also evaporated. There were only 50 mentions by October 14, the lowest since September 2.

ZEC Trading Volume Up 31% Today

Meanwhile, the resurgence in ZEC’s value is largely driven by renewed interest in the token, according to CoinMarketCap. Zcash trading volume has increased by 31% over the past 24 hours, reaching $1.42 billion.

Open interest in ZEC has also increased, with Coinglass data showing a 6.32% rise on Binance and a 12% rise on Bybit.

However, there are no clear signs of what is driving the interest beyond the crypto market recovery. A possible cause is the potential NU7 upgrade on the Zcash network.

A mainnet decision on the upgrade is set for October 20. If implemented, it will reduce block time to 25 seconds.

The upgrade will also reserve 60% of transaction fees as a network sustainability mechanism, to be paid out to miners later, starting in February 2031.

This article is for informational purposes only and does not constitute financial or investment advice.