Key takeaways
- Zcash dipped 1% on Tuesday following Monday’s rally. day,
- The Ironwood shielded pool now holds 3.07 million ZEC, representing 70% of total shielded volume.
- ZEC is approaching the apex of a symmetrical triangle, with resistance near $528.
Zcash (ZEC) dipped 1% on Tuesday despite the massive rally on Monday. The surge earlier this week comes as rising Ironwood adoption and stronger derivatives activity supported demand.
The privacy coin trades above $500 and is approaching the apex of a symmetrical triangle pattern. A breakout above the upper trendline could strengthen the bullish outlook and bring the $600 region into focus.
Ironwood shielded volume crosses 3 million ZEC
Migration to Zcash’s Ironwood shielded pool continues to gain traction following the discovery of a counterfeiting vulnerability affecting the network’s older pool infrastructure.
Data from Zkp.baby shows that Ironwood’s shielded volume reached 3.07 million ZEC on Monday. The pool now accounts for approximately 70% of the total ZEC held in shielded pools.
Meanwhile, volume in the older Orchard pool has declined to 761,889 ZEC as users continue migrating their holdings.
The shift toward Ironwood indicates growing adoption of the updated shielded infrastructure. It also suggests that users are responding to the network’s security changes while maintaining demand for Zcash’s privacy features.
Zcash’s derivatives market is also showing renewed retail participation. CoinGlass data shows that ZEC futures Open Interest decreased 1% over the past 24 hours to $924.16 million. The decrease signals that traders are closing new positions or allocating more capital to existing contracts.
Zcash price outlook: ZEC approaches triangle breakout
Zcash trades above $500 on Tuesday, maintaining a mildly bullish technical outlook as it holds above the 50-day Exponential Moving Average at approximately $490.
The 200-day EMA near $420 also supports the broader bullish structure. Meanwhile, the price is contracting between two converging trendlines, forming a symmetrical triangle on the daily chart.
This pattern typically indicates declining volatility before a larger directional move. However, the triangle does not confirm whether the eventual breakout will be bullish or bearish.
Momentum indicators provide mixed but improving signals. The Relative Strength Index has risen above its neutral level to 55, suggesting renewed buying pressure.
The Moving Average Convergence Divergence indicator remains marginally below its signal line, pointing to some lingering downside pressure. A bullish crossover would provide additional confirmation that buyers are regaining control.
Zcash faces immediate resistance at the triangle’s upper trendline near $528. A sustained daily close above this level would confirm a bullish breakout and could propel ZEC toward the 78.6% Fibonacci retracement at approximately $595. This level is calculated from the decline between $690 and $250.
Clearing $595 would bring the psychologically important $600 level into focus and strengthen the prospect of a broader trend continuation.
On the downside, the 50-day EMA near $490 provides initial support. A breakdown below this moving average could extend the correction toward the 50% Fibonacci retracement at $470.
If selling pressure intensifies, the 200-day EMA at approximately $420 represents the next major support level. Holding above these moving averages would preserve Zcash’s broader recovery structure.
