Zcash Price Forecast: ZEC Rebounds Amid Support for Ending Community Grants and Upcoming Network Upgrade

Zcash Price Recovery and Community Grants Proposal

As of November 2, 2026, Zcash (ZEC) has demonstrated a mild recovery, trading above $1,250. This rebound coincides with a notable development in the Zcash ecosystem: Josh Swihart, founder of the Zcash Open Development Lab (ZODL), publicly expressed support for a compromise proposal to end the 8% block reward allocation to the Zcash Community Grants (ZCG). The proposal, initiated by Zcash co-founders Sean Bowe and Zooko Wilcox-O’Hearn, suggests redirecting these funds into a “Future Dev and Legal Defense Fund” lockbox. This change would require ZCG to donate 50,000 ZEC to the Network Sustainability Mechanism, while ongoing grants would continue from the existing treasury.

Institutional and retail interest appears to be increasing alongside these governance discussions. Exchange Traded Fund (ETF) inflows have resumed after a period of outflows, with approximately $17.72 million entering last week followed by $41.09 million in the subsequent week. This trend follows a 3-for-1 stock split on September 28, which had previously contributed to selling pressure. Futures Open Interest (OI) data from CoinGlass indicates a gradual buildup in positions, rising to 1.99 million ZEC on Monday from a low of 1.94 million ZEC on Saturday, suggesting renewed risk appetite among traders.

Technical Outlook and Network Upgrade Impact

Technically, Zcash maintains a near-term bullish bias. The price has reclaimed key technical levels on the four-hour chart, including the 50-period Exponential Moving Average (EMA) at $1,250 and the 200-period EMA at $1,240. A rising trendline connecting lows from October 18 and 30 near $1,215 supports the current uptrend. The immediate resistance level to watch is the horizontal barrier at $1,385, which has held since early October.

Looking ahead, the Zcash Network Upgrade 7 (NU7), scheduled for November 5, is expected to influence market sentiment. NU7 will reduce block intervals from 75 seconds to 25 seconds, potentially improving transaction confirmation speeds. Additionally, the upgrade will disable the Sprout pool and its associated transactions, which may have implications for network functionality and user experience.

FXVNPro Market Perspective

From a market transmission perspective, the combination of governance changes and technical upgrades can affect Zcash’s risk profile and investor confidence. The proposal to end community grants reallocates block rewards, which may alter funding dynamics for ecosystem development and legal defense. This could influence long-term sustainability perceptions among institutional investors.

Meanwhile, the NU7 upgrade’s reduction in block time may enhance network efficiency, potentially attracting more users and increasing transactional demand. ETF inflows and rising futures Open Interest suggest that both institutional and retail participants are positioning for possible upside, but these factors remain contingent on successful implementation of governance proposals and network upgrades.

Trading Scenarios

• Scenario 1 (Bullish): If Zcash sustains support above the 50-EMA at $1,250 and the 200-EMA at $1,240, and the NU7 upgrade proceeds smoothly, then the price could test the resistance near $1,385. Continued ETF inflows and rising Open Interest would reinforce this scenario.
• Scenario 2 (Bearish): If the community grants proposal faces opposition or delays, or if technical upgrades encounter issues, then selling pressure could re-emerge. Failure to hold the $1,240 EMA support might lead to a retest of the $1,215 trendline low, signaling a potential short-term correction.

What Traders Should Watch

• Implementation progress and community response to the proposal ending the 8% block reward share to ZCG.
• Market reaction to the Network Upgrade 7 scheduled for November 5, especially regarding transaction speeds and network stability.
• ETF inflow trends and futures Open Interest changes as indicators of institutional and retail sentiment.
• Price action around the $1,240 and $1,250 EMA levels and the $1,385 resistance barrier.

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