ZCASH CLIMBS TOWARD $300 AS PRIVACY POOL EXPANDS TO 30% OF TOTAL SUPPLY

ZCASH CLIMBS TOWARD $300 AS PRIVACY POOL EXPANDS TO 30% OF TOTAL SUPPLY

ByMolly McNearney

Zcash price tests $300 resistance: Zcash is pressing against the key psychological $300 level as growing privacy adoption quietly reshapes its supply dynamics. While short-term volatility remains elevated, structural shifts in shielded supply could play a larger role in price behavior over time.

ZEC Price Performance: Strong Weekly Gains Despite Pullback

At press time, ZEC is trading near $287, down 11% over the past 24 hours following a sharp rally.

  • 7-day performance: +23%
  • 30-day performance: +29%
  • 1-year performance: +792%

The recent 7-day range between $223 and $327 highlights heightened volatility as the price consolidates below the $300 resistance zone.

On the derivatives side, momentum appears to be cooling. Data from CoinGlass show trading volume declining 27% to $1.57 billion, while open interest fell 13% to $406 million. The drop suggests leveraged positions have been partially flushed during the recent pullback.

Shielded Pool Expansion: 30% of Supply Now Private

A Feb. 16 post by Delphi Digital revealed that Zcash’s shielded pool now accounts for 30% of total supply, up from just 11% a year ago.

The firm described this trend as a “privacy flywheel.” As more coins move into shielded addresses, the anonymity set expands. A larger anonymity set improves privacy guarantees, which can attract additional users. If sustained, this feedback loop could significantly alter supply dynamics.

At the current growth rate, Delphi estimates that more than 50% of the ZEC supply could be shielded within 12 to 18 months.

Coins held in the shielded pool historically show lower turnover and stronger long-term conviction. This reduces the immediately available float in the market. When the circulating supply tightens while demand increases, price reactions can become more pronounced.

Halving Impact: Lower Inflation Changes the Supply Equation

Zcash’s November 2024 halving further strengthened its supply profile. Annual inflation has dropped to around 4% and is projected to decline toward roughly 1% by 2028.

After nearly a decade of proof-of-work mining, most of the circulating supply is already broadly distributed across miners globally. With emissions declining and shielded holdings rising, the structural supply picture has become increasingly constrained.

Zcash Technical Analysis: Can ZEC Break Above $300?

ZEC is currently testing resistance near $300, a psychological round number that aligns with recent swing highs and previous rejection zones.

Bullish Scenario

A confirmed break and daily close above $300 would strengthen the short-term bullish case. If that level flips to support, the next technical target sits near $366, close to the upper Bollinger Band.

The Relative Strength Index (RSI) has rebounded to 47 after dipping below 30, signaling that selling pressure has eased. A sustained move above 50 would add conviction to any breakout attempt.

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Key Support Levels

Immediate support: Around $277, aligning with the middle Bollinger Band. Holding above this level preserves upward momentum.

Major support: Near $188, corresponding with the lower Bollinger Band and the base of the previous oversold bounce.

Bollinger Bands are beginning to contract after recent expansion, indicating cooling volatility. Such compression often precedes a decisive directional move.

Outlook: Supply Compression Meets Technical Resistance

Zcash is at a critical juncture. Structurally, rising shielded adoption and declining inflation are tightening effective supply. Technically, the price is coiling beneath a major resistance level.

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A breakout above $300 could open the door to a move toward $366. Failure to clear resistance, however, may trigger a pullback toward $277, with $188 remaining the key level to defend for the broader bullish structure to stay intact.

1. Why is Zcash testing the $300 level?
Zcash is approaching $300 due to strong recent momentum, with gains of 23% over the past week and 29% over the past month. The level also represents a psychological resistance zone and aligns with previous swing highs.

2. What is happening with Zcash’s shielded supply?
Around 30% of Zcash’s total supply is now held in the shielded pool, up from 11% a year ago. This increase strengthens privacy guarantees and reduces immediately tradable supply, potentially tightening market float.

3. How does shielded adoption impact price dynamics?
Coins moved into shielded addresses tend to be held longer. Lower turnover reduces available supply. If demand remains strong while liquid supply shrinks, price moves can become sharper and more volatile.

4. What role did the 2024 halving play?
The November 2024 halving reduced annual inflation to roughly 4%, with projections falling toward 1% by 2028. Lower issuance combined with growing shielded holdings strengthens Zcash’s long-term supply structure.

5. What are the key technical levels to watch?

  • Resistance: $300 (critical breakout level)
  • Immediate support: $277
  • Major support: $188
    A confirmed break above $300 could open the path toward $366, while rejection may lead to a pullback toward lower support levels.

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