Zcash trades above $500 as shielded supply shifts to Ironwood after security fix

Zcash (ZEC) continued to hold above the $500 level on Monday, maintaining a sideways price trend while staying above its 50-day Exponential Moving Average (EMA) at $490. Zcash migrates shielded supply to Ironwood after network upgrade Network activity was shaped by ongoing migrations of shielded coins out of the older Orchard pool and into the Ironwood pool. This movement followed a series of critical network upgrades implemented to address a four-year-old security vulnerability. Developers uncovered the issue in late May, revealing a flaw that could potentially have allowed attackers to create counterfeit coins, which posed a major threat to Zcash’s integrity as a privacy-oriented asset with a scarce supply. Zcash’s core feature is its ability to facilitate shielded transactions that hide sensitive transaction details like wallet addresses and amounts. Analysts noted that a hidden inflation bug could seriously undermine the digital currency’s utility as a store of value. In response, developers executed an emergency hard fork on June 3 and completed the Ironwood upgrade in late July 2026. The upgrade strengthened security around shielded transactions and encouraged users to move their assets into the Ironwood pool. Data indicated that migration from the Orchard pool to Ironwood is progressing steadily. Over the past 24 hours, the Orchard pool supply dropped almost 17% to 1.49 million ZEC, while Ironwood’s shielded balance climbed 14.5% to 2.30 million ZEC. The total supply of shielded ZEC stabilized at roughly 4.36 million, showing a rebound after falling to a low of 3.65 million at the beginning of August. The contrasting flows between privacy pools reflect a transfer of funds within shielded transactions, rather than a wider withdrawal from privacy features. This recovery highlights renewed interest in Zcash’s core privacy offering after recent security concerns. While Zcash users executed these large-scale transfers, speculative demand stayed muted as overall risk appetite across the digital asset market remained low. CoinGlass data showed ZEC futures Open Interest shrinking 1.3% to $884.94 million during the same window, as traders closed positions or reduced exposure. Zcash’s funding rate declined to 0.0075% from 0.0098% one day earlier, signaling that while long positions still maintain a bullish bias, appetite for leveraged exposure continues to soften. Technical outlook: ZEC consolidation persists Despite momentum indicators showing some weakness, ZEC’s technical structure has stayed constructive. The token trades above its 50-day EMA at $490, as well as the 100-day and 200-day EMAs at $469 and $414, respectively. These moving averages act as key support zones and reflect an intact medium-term uptrend. However, Zcash faces meaningful overhead resistance between $532 and $548, with $532 marking the 78.6% Fibonacci retracement of its recent rise from $368 to $589. An overhead descending trendline further strengthens this resistance range.