Key Takeaways:
ZEC rose 11% to $552, breaking above an ascending triangle as $12.75 million in short liquidations forced bears to cover.
"Short liquidations were 26 times bigger than longs, totaling $12.75 million against just $500,000 in long liquidations," according to CoinGlass data. A whale on Hyperliquid was fully liquidated for more than $1.81 million in a ZEC short position, losing about $130,500, on-chain sleuth Onchain Lens reported.
Zcash futures trading volume reached $2.44 billion, dwarfing spot volume of $255 million, per CoinGlass. The OI-weighted funding rate turned positive at 0.0086%, meaning bulls are paying a premium to keep positions open. Daily spot volume surpassed $647 million, up 43%. The move extended ZEC's weekly gain to 16%, recovering from $455 on July 9.
The breakout above the $538 resistance of an ascending triangle pattern opens a path toward $626, though the rally's sustainability depends on ZEC holding above the breakout zone. The Chaikin Money Flow at 0.02 shows mildly positive capital inflows, while the MACD remains green. The Ironwood shielded pool upgrade, scheduled around July 28, provides a fundamental catalyst — developers are completing formal proofs to verify the fix removes a counterfeiting risk in the Orchard pool.
The rally comes as Zcash prepares for the Ironwood upgrade, which goes live on mainnet around July 28. Developers disclosed in early June a long-standing counterfeiting risk inside the Orchard shielded pool, weighing on confidence. Project Tachyon and Zcash core developers are now completing formal mathematical proofs to verify Ironwood removes the vulnerability without introducing new security risks, according to project updates.
The broader macro backdrop also supported the move. US CPI data for June came in below expectations at 3.5% versus 3.8% forecast, reducing expectations that the Federal Reserve would need further rate increases. Bitcoin rose from around $62,000 to above $64,000, providing additional tailwinds for altcoins.
On the daily chart, ZEC's Relative Strength Index sits at 62, below the overbought threshold of 70, suggesting room for further upside. The price is trading near the upper Bollinger band around $566, with the middle band at $464. On-balance volume has turned higher during July, showing accumulation accompanied the breakout. Key support sits at $485, with the 9-day EMA near $514.
However, the Long/Short Ratio leans toward selling. Top traders on CoinGlass show a ratio of 0.46, slightly below retail at 0.51, indicating cautious positioning after the rapid run. A failure to hold above $538 would invalidate the breakout, with a break below the ascending trendline support representing a complete reversal.
This article is for informational purposes only and does not constitute investment advice.
