Zcash (ZEC) has rallied over 11% to reclaim the $510 level, driven by the Ironwood network upgrade and improving mining economics. The token hit $513 during Asian trading on August 5, capping a 12% monthly recovery from July lows.
The Ironwood upgrade introduces a turnstile verification mechanism that cryptographically confirms the total circulating supply, removing the risk of hidden inflation that long plagued privacy coins. More than 1 million ZEC has migrated into the new shielded pool, reducing spot liquidity and causing sharper price reactions to buying demand.
Mining costs are also falling. Digital Currency Group’s Fortitude Mining acquired a 12.5-megawatt facility in Nebraska, lowering per-coin production costs from $70 to $40. Lower expenses may ease selling pressure from miners. Meanwhile, ZEC-backed derivatives on Starknet and Nym’s integration for native payments are increasing organic demand.
Technical indicators show bullish momentum, with ZEC holding above key moving averages and the RSI at 71.8. However, analyst Crypto Patel warns of a bearish order block between $540 and $580. He plans to short if price reaches that zone, setting targets at $400, $320, and $230. A daily close above $645 would invalidate the bearish scenario. The broader uptrend from February inside an ascending channel remains intact, with a breakout above $685 potentially opening the path to new highs.
