Why Is the ZCash (ZEC) Price Up 18% Today?

Key Insights:

• ZCash founder has proposed the Ironwood upgrade to verify ZEC circulating supply.
• Whale activity has intensified following the recent ZEC price correction, signaling renewed bullish interest.
• Analysts are closely watching ZEC’s retest of the key $520 to $530 range, and further upside to $600.

Privacy coin ZCash (ZEC) has seen major volatility over the past week following a key vulnerability spotted in the protocol. In the last 24 hours, the ZEC price has recovered 18%, and is eyeing a breakout past $500. This comes as ZCash founder Zooko Wilcox said that the funds in the Orchard pool are recoverable.

ZCash Founder Says Funds Are Recoverable

ZCash founder, Zooko Wilcox, has reassured users after last month’s disclosure of a critical vulnerability in the privacy protocol. He stated that funds held in the Orchard shielded pool should remain fully recoverable.

According to Wilcox, the Zcash development team believes the flaw was never exploited and that legitimate Orchard funds are not at risk. His comments came as the ZCash community expressed concerns regarding the protocol’s integrity after a recent incident.

Wilcox acknowledged that some users may choose to move their ZEC holdings for additional peace of mind. However, he emphasized that keeping assets in shielded wallets remains a reasonable option.

Furthermore, Wilcox also cautioned that transferring funds doesn’t come without risks. He noted that moving assets can introduce privacy tradeoffs, expose users to custodial risks, and increase the likelihood of operational errors during the transfer process.

Interestingly, the ZCash founder proposed a future network upgrade known as Ironwood. He said that this upgrade will allow users to independently verify the ZEC circulating supply. The proposed enhancement is aimed at addressing lingering concerns over supply transparency.

Whales Initiate Long Bets on ZCash

Following the ZCash price correction to $400 last weekend, big players cited an opportunity and entered the derivatives play. Some whale entities have taken a long position in ZCash, anticipating a strong revival.

Blockchain analytics platform On-chain Lens reported that crypto trader Garrett Jin, known in some circles as a Bitcoin OG, has further increased his leveraged position in Zcash.

According to the report, Garrett Jin doubled his long exposure to ZEC, bringing his total position to 46,013 ZEC, valued at approximately $19.3 million. Despite the increased exposure, the position is currently showing an unrealized loss of more than $950,000.

Meanwhile, another trader identified as Loracle has seen significant gains as ZEC prices recovered. On-chain Lens reported that Loracle’s 10x leveraged long position in ZEC is now sitting on an estimated unrealized profit of roughly $4.5 million.

What Happens to ZEC Price Next?

Crypto analyst Ardi said that Zcash is currently retesting the prior shoulder base in the $520 to $530 range. According to the analyst, this price range was the most likely target following ZEC’s breakout above the $480 resistance level. The current retest is now being closely watched for signs of continuation or rejection.

Ardi noted that ZEC has previously exhibited multiple “Type 2 distribution” patterns. This is where the asset reclaims an important support level, attracts late long positions, and subsequently breaks down below support. The analyst cautioned that a similar setup could unfold if ZEC fails to hold the current range.

On the upside, if ZEC price successfully reclaims the $520 to $530 area, it could rally further higher to $600 levels. Ardi described the ongoing retest as one of the most important technical tests for ZEC in recent months.

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