Zcash open interest has declined 7.8%, according to the data from analytical platform Coinglass.
Open interest (OI) refers to the value of futures contracts that are still open. In other words, the rise in OI means more active positions.
When a price and OI decline simultaneously, it usually suggests deleveraging. The traders might be closing positions or their positions might be liquidated.
ZEC is trading near $1,286, down 1.5% over the past 24 hours. The price’s pullback comes amid a broader market correction, with BTC down 5.75% in 24 hours.
NU7 upgrade goes live
Zcash gained 7.69% on November 4, rising on high expectations surrounding NU7. The upgrade introduces several changes to the network's transaction processing and reward structure.
As the upgrade went live on November 5, the target block interval went from 75 seconds to 25 seconds. According to the project’s statement, the change makes private payments confirm three times faster.
In addition to that, NU7 introduces a new transaction fee allocation model. 60% of the fees will go directly to a reserve for future network reserves, while the miners receive the remaining 40%.
Other changes include increased capacity for the Orchard shielded pool and new limits for wallet protection from spam.
So far, the market response has been mixed amid Friday’s correction. However, the ZEC chart is currently showing signs of an uptrend.
The price is testing support around $1,250, a level that could influence its next move. A sustained recovery above the $1,260-1,275 corridor would stabilize the further rebound.
On the other hand, a break below $1,230 would mean a failed recovery and a prolonged downtrend.
