Key Highlights
- Zcash (ZEC) gained 3.65% today and is up 15% this week as investor confidence continues to recover after last month’s security fix.
- Trading volume remained strong as buyers pushed ZEC higher from its June lows, helping fuel the recent price recovery.
- Traders are watching the $534 resistance level, with a breakout pointing toward $675, while failure could send ZEC back to around $390.
Zcash (ZEC) surged about 4.72% on Tuesday as investors continued buying the privacy-focused cryptocurrency after its strong recovery from June’s security scare.
The move added to a 15.71% gain over the last seven days and remains one of the best-performing cryptocurrencies among the top assets over the last 30 days, with a 25% gain.
At the time of reporting, ZEC is trading for $532, up from an intraday low below $480. Meanwhile, the trading activity has dropped about 11% to around $481 million in volume, while the market cap sits at around $8.93 billion.
Why is ZEC price up today?
One major reason is the hype from the upcoming Ironwood network upgrade. Recently, Zcash core developer Sean Bowe confirmed that the update will activate at block height 3,428,143, expected around July 28 at 8 a.m. EST.
The upgrade was moved back from the earlier July 21 target to give exchanges, mining pools, wallet providers, and other service providers more time to prepare. “Zcash’s Ironwood mainnet activation height has been set and tagged,” Bowe wrote, adding that all major ecosystem organizations are committed to activating NU6.3 at the scheduled block height.
This update is crucial because it permanently addresses the counterfeiting flow that was discovered in Zcash’s Orchard shielded pool earlier this year. It also marks the next stop in the network’s transition to the new Z3 software stock which includes Zebra, Zaino and Zallet.
The update was moved to July 21 to give exchanges, wallet providers and other services more time to prepare.
Lower U.S. inflation gave crypto market a boost
Aside from this, the wider cryptocurrency market also helped support ZEC’s latest move after fresh U.S. inflation data came in lower than expected.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 3.5% year-over-year in June, below the expected 3.8%, while monthly CPI came in at -0.4%, compared with forecasts of -0.1%. Core CPI also slowed to 2.6% year-over-year and remained flat on a monthly basis, both below market expectations.
The inflation report attracted extra attention after Federal Reserve Governor Christopher Waller recently said he could support another interest rate hike if inflation remained high.
Instead, the softer inflation figures improved market sentiment and helped lift Bitcoin, which in turn supported buying across the broader cryptocurrency market. In short, as major cryptocurrencies like Bitcoin surge following the CPI release, investors also increased exposure to altcoins, with Zcash extending its rally alongside the wider market.
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ZEC faces the $534 resistance level
Looking at the chart on the daily time frame, the price is now reacting to a resistance level at $534, which is a level that had previously acted as both support and resistance in the past, making it an important point for the market.
Meanwhile before this, price had initially reacted off a support level at around $410. This level gave ZEC a push to the upside, creating a series of higher highs and lows in its path. But getting the the current resistance, the price seems to just take out liquidity and retraces a bit.
If buyers can push ZEC above this level, the token could build enough strength to move toward its recent high near $644. On the other hand, if sellers take over, the price could lose momentum and fall toward the previous major support.
Moreover, the Relative Strength Index (RSI) is at 66, which suggests that buyers are in control and the price still has room for more upside move.
Also Read: Dogecoin (DOGE) Shows Buying Interest with 2.2% Gain in 24 Hours
