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Zcash (ZEC): Recovery After Heavy Selling Pressure – What Comes Next?

Zcash (ZEC) has shown signs of recovery after experiencing a sharp correction. Following heavy selling pressure, the price dropped to approximately $1,120, marking its 24-hour low. However, ZEC has now recovered toward the $1,200 level, bringing renewed attention to its short-term market direction.

In my view, this recovery is worth watching, but it does not yet confirm a complete bullish reversal. The market needs to demonstrate whether buyers can maintain control above important resistance levels.

1. Liquidations and Recent Market Pressure

One of the major factors behind ZEC's recent decline was leveraged trading activity. Reports indicated that a large investor accumulated approximately 25,000 ZEC at an average price of $1,271 while also opening a leveraged long position of around 18,900 ZEC near $1,378.

When the price fell below $1,200, the futures position was liquidated, contributing to significant losses. This type of forced liquidation can increase selling pressure and accelerate short-term volatility.

The recovery toward $1,200 suggests that buyers are attempting to regain control, but confirmation is still necessary.

2. NU7 Network Upgrade and Expectations

Another important development is the anticipated NU7 network upgrade, scheduled around November 5 at block height 3,543,405.

The proposed reduction in block production time from approximately 75 seconds to 25 seconds could improve transaction efficiency and confirmation speed.

However, migration requirements involving the legacy Sprout pool and disagreements surrounding community grants remain important factors to monitor.

3. Growing Adoption and Payment Integrations

Zcash's integration with NEAR Intents has opened additional possibilities for connecting privacy-focused transactions with mainstream payment channels, including Cash App, PayPal, and Wise.

If adoption continues to expand, this could strengthen ZEC's long-term utility. Nevertheless, real-world adoption takes time, and its impact should not be confused with immediate price momentum.

4. On-Chain Activity Shows Growing Interest

Zcash network activity has also attracted attention, with weekly transactions reportedly increasing from approximately 28,000 to nearly 120,000.

Growing transaction activity and shielded-pool participation could indicate increasing interest in privacy-focused financial infrastructure. The important question is whether this growth remains sustainable beyond short-term speculation.

5. My ZEC Price Outlook: Important Levels to Watch

With ZEC currently trading around $1,200 after touching $1,120, these are the levels I would monitor:

- Immediate support: $1,150–$1,120.
- Major support: $1,080–$1,050.
- Immediate resistance: $1,220–$1,250.
- Next resistance: $1,270–$1,300.
- Stronger bullish confirmation: A sustained move above $1,300.

If ZEC maintains support and successfully breaks above $1,250, another recovery attempt toward $1,270–$1,300 could develop.

However, rejection around $1,220–$1,250 could bring renewed selling pressure. A break below $1,120 would weaken the recovery structure and increase downside risk.

My Personal View

I believe ZEC is at an important decision point. Its recovery from $1,120 toward $1,200 is encouraging, while the upcoming network upgrade and growing payment integrations provide additional reasons to monitor the project.

However, I would not consider one recovery move sufficient evidence of a new bullish trend. I prefer to wait for confirmation above resistance, observe trading volume, and monitor whether buyers can defend important support levels.

In the current environment, protecting capital is just as important as identifying opportunities. Avoiding FOMO and waiting for confirmation can help investors navigate this kind of volatility more carefully.

What do you think? Can ZEC reclaim $1,300, or will sellers push the price back toward $1,120?

This content is for informational purposes only and does not constitute investment advice.

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