Zcash Falls 8% From $1,650 Peak: Is ZEC Erasing Its 2026 Rally?

• Zcash dropped 8.5% during Monday's volatile trading session
• ZEC trades roughly 26% below its September peak
• Leveraged liquidations intensify pressure before Zcash's NU7 upgrade

Zcash (ZEC) is struggling to maintain momentum after its remarkable 2026 privacy-coin rally, falling 8.5% on October 12 and extending a correction from its September peak above $1,650.

ZEC closed at $1,653.12 on September 26 before declining to approximately $1,167 on Monday. The cryptocurrency recovered toward $1,215 on October 13, but remained roughly 26% below its September closing peak.

Zcash Price Drops as $19.9 Million in Positions Are Liquidated

The latest sell-off unfolded alongside broader cryptocurrency weakness as Bitcoin slipped toward $81,000 and leveraged investors reduced exposure to riskier digital assets.

Zcash had previously attracted heavy speculative interest, with reported derivatives trading volume reaching approximately $5.46 billion over 24 hours. Such activity can amplify reversals when traders using leverage face margin calls.

The decline follows broader Bitcoin selling pressure, as investors reassess risk ahead of Wednesday's U.S. inflation figures.

<iframe src=”https://widgets.coincodex.com/w/1b6328e9-9073-490a-a9b2-9730a4d24b98?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>ZEC Price Prediction: Is $1,100 the Next Test?

The immediate question is whether Zcash can stabilize after its latest liquidation-driven decline.

Binance historical prices show ZEC briefly trading near $1,124 on October 13, placing the $1,100-$1,125 region under scrutiny as a potential support zone.

A sustained move below that region could expose the psychological $1,000 threshold. Conversely, recovering $1,300 would put ZEC closer to the trading range seen earlier in October.

These are technical reference levels rather than guaranteed price targets.

Despite the correction, Zcash has not erased its entire 2026 advance. The cryptocurrency remains substantially above its early-year trading levels, although the speed of its decline demonstrates how quickly speculative gains can reverse.

Zcash's NU7 Upgrade Could Provide the Next Catalyst

The price correction arrives ahead of a potentially significant technical development.

The Zcash Foundation announced that its NU7 upgrade had entered testnet preparations, introducing a proposed reduction in block spacing from 75 seconds to 25 seconds.

The upgrade also includes changes to transaction fees and mechanisms designed to strengthen network sustainability.

A final mainnet activation decision is expected around October 20, with November 5 identified as the proposed launch date.