Zcash was trading near $1,619 on Wednesday after a sharp advance, with rising use of its privacy-focused transaction system and fresh institutional investment supporting the rally. The report described the previous session’s gain as 7.5%, while its summary cited a 10% increase.
Weekly shielded transaction activity has reached its highest level since 2022. Data from Blockworks showed 62,379 shielded transactions were processed last week, including 55,549 through the newer Ironwood pool. That represented approximately 89% of the weekly total.
Shielded activity climbs
Zcash’s shielded transactions allow users to conceal transaction details while still using cryptographic proofs to verify that transfers are valid. The latest increase suggests that network usage is rising alongside the token’s market value, although one strong week is not enough to establish a lasting adoption trend.
The concentration of activity in the Ironwood pool also points to growing use of Zcash’s newer shielded infrastructure. Sustained transaction volumes over a longer period will be needed to determine whether the increase reflects a durable change in user behavior rather than a temporary surge.
Investment products attract inflows
Institutional demand has provided another source of support. Grayscale’s ZEC-focused product recorded $32.81 million in inflows on Tuesday, according to SoSoValue data, lifting its net assets under management to approximately $979.48 million.
European investors also gained another regulated route to Zcash exposure after 21Shares launched a ZEC-focused exchange-traded product on Euronext. Continued inflows could reduce the amount of ZEC readily available in the market, although investment-product flows can reverse quickly and do not guarantee sustained buying pressure.
$1,700 is the next technical test
ZEC is approaching the upper boundary of a bullish channel, with descending resistance from the August 23 and September 19 highs located near $1,700. A sustained close above that level, ideally supported by stronger trading volume, could open the way toward the $2,000 psychological threshold and place the token in price-discovery territory.
Technical indicators remain constructive. ZEC is trading above its four-hour 50-, 100- and 200-period exponential moving averages, positioned near $1,424, $1,295 and $1,108 respectively. The Moving Average Convergence Divergence indicator remains positive after crossing above its signal line, while the Relative Strength Index is near 63—above neutral but below the commonly watched overbought level of 70.
A failure to clear $1,700 could send ZEC back toward initial support around $1,595. A deeper pullback would bring the $1,422-$1,424 area into focus, where the September 18 low aligns with the four-hour 50-period EMA. For now, shielded-transaction growth, investment inflows and positive momentum leave the $1,700 breakout level as the market’s next decisive test.
