Zcash Price News: ZEC Eyes Rally to $500 as Inflows to Shielded Pools Rise

Zcash (ZEC) rose by 20% in the past 24 hours and has accumulated a 78% jump in the past 30 days alone, as the Iran war seems to have prompted crypto investors to seek shelter on privacy tokens.

Trading volumes jumped by 55% in the past day, rising beyond $1 billion and accounting for 16% of the token’s circulating market cap.

Meanwhile, daily short liquidations recently reached their highest level since late December, with nearly $28 million worth of short positions being blown up in the past 4 days alone.

The potential for a short squeeze is high at this point, especially if Zcash starts to rise above key psychological resistances. Another privacy token called Dash (DASH) also spiked today, rising by 30% in the past 24 hours alone.

Cryptocurrencies have always been seen as an alternative for investors to execute transactions anonymously. However, the inherent transparency of blockchain technology makes it easy for anyone to track the origin and destination of each transaction.

Zcash Shielded Pools Have Seen Increased Demand

Zcash masks this trail through “shielded” transactions. According to on-chain data from ZecHub, net inflows to shielded pools have been rising since the beginning of March, back when the price of ZEC broke out of a bullish trading pattern.

Meanwhile, during the first week of April, another 24,644 tokens flowed to the Orchard pool, indicating rising interest in shielded transactions.

Typically, higher inflows to shielded pools have set the stage for previous rallies. The conflict in Iran could be driving capital toward “privacy” tokens like Zcash, as investors in the Middle East can bypass traditional checkpoints within the financial system to protect their assets as the conflict rages on.

At the time of writing, 5.2 million ZEC tokens remain “shielded”, a figure that accounts for nearly a third of the asset’s circulating market cap.

Zcash Eyes Move to $500 as Bullish Momentum Accelerates

Heading to the daily chart, we can see that ZEC broke out of a descending triangle pattern in mid-March, back when inflows to shielded pools started to rise.

The token initially encountered a strong sell wall at the 200-day exponential moving average (EMA), but the price has now risen past that technical threshold and seems on track to hit $500 if the rally continues.

The Relative Strength Index (RSI) is already reaching overbought levels in this higher time frame, increasing the odds of a pullback at some point. However, this also indicates that bullish momentum has accelerated.

We expect some resistance at the $400 area and a potential retreat to $325 in the near term. If that scenario unfolds, late buyers could step in to take long positions as demand for “shielded” ZEC seems to be increasing.

In that case, an entry at $325 would offer a 54% upside potential if a target is set at $500 for Zcash for the next few weeks.