Zcash price tests resistance as shielded supply hits 30%

Zcash price is pressing against a key psychological level as privacy adoption quietly tightens supply.

ZEC was trading around $287 at press time, down 11% in the past 24 hours. The short-term drop comes after a strong run. Over the last seven days, the price is up 23%. On a 30-day basis, gains stand at 29%.

Over the past year, Zcash (ZEC) has surged roughly 792%, making it one of the stronger performers of this cycle. The 7-day range between $223 and $327 reflects elevated volatility as the price coils beneath the $300 level.

Derivatives data show some cooling. According to CoinGlass data, trading volume fell 27% to $1.57 billion, while open interest dropped 13% to $406 million, a sign that some leveraged positions have been flushed out during the pullback.

Shielded supply growth tightens float

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

The firm described this dynamic as a “privacy flywheel.” As more coins move into the shielded pool, the anonymity set expands. A larger anonymity set improves privacy guarantees, which in turn attracts more users. That feedback loop, if sustained, could materially shift supply dynamics.

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

Coins that enter the shielded pool are often held longer. Historically, shielded users show higher conviction and lower turnover. That reduces the immediately available supply on the market. When float tightens and demand rises, price reactions can become sharper.

Zcash’s November 2024 halving also changed the equation. Annual inflation 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 supply is already distributed across a global miner base.

Zcash price technical analysis

ZEC is trading near $287 and testing resistance around $300. This is a psychological round number and sits close to the recent swing high in the current recovery leg. This zone is also where previous price rejections cluster.

The short-term bullish case would be reinforced by a verified break and close above $300. Immediate support is located close to $277, which serves as a dynamic support level and is in line with the middle Bollinger Band. Holding above it maintains the upward momentum. 

Below that, the recent swing low and lower Bollinger Band, which is located close to $188, provides the next significant support. That level marked the base of the previous oversold bounce.

The Bollinger Bands are beginning to contract after a period of expansion. Volatility is cooling. Often, this type of compression precedes a stronger directional move.

At 47, the  relative strength index has bounced back from oversold territory below 30, indicating that selling pressure has subsided. Any breakout attempt would gain conviction if it were to sustain a move above 50. 

A higher low of $188 has been set for the near term. A constructive structure is indicated by the price’s current upward push into resistance. The next technical target is located around $366, close to the upper Bollinger Band, if $300 is broken. 

But a decline toward $277 is likely if the price fails at $300. The $188 level, which would be crucial to defend if the larger bullish structure were to hold, could be exposed once more in a deeper correction.