ZCash (ZEC) Price: Network Activity Rises While Token Falls 30% From Peak

TLDR

• ZCash’s shielded pool has grown to 23% of total supply, up from 18% in October
• ZEC price surged from $400 on November 1 to a seven-year high of $744 before dropping 30%
• The token currently ranks second on Coinbase by 24-hour trading volume with $345 million
• Technical indicators show no bearish divergences despite the price pullback from $750 resistance
• The recent price increase shows actual network usage rather than just speculative trading

ZCash has experienced major price movement over the past two weeks. The privacy-focused cryptocurrency climbed from around $400 on November 1 to reach $744 last Friday.

This marked the highest price level for ZEC since 2018. However, the token has since pulled back by 30% from that peak.

The price rally came alongside increased network activity. ZCash’s shielded pool now represents 23% of total supply. This is up from 18% in October.

The shielded pool is a privacy feature that hides transaction details. When users move their ZEC into the shielded pool, they interact directly with the blockchain. This makes shielding a useful measure of real network usage.

Trading volume has also increased substantially. At the time of reporting, ZEC ranked second among Coinbase’s most traded assets by 24-hour volume. The token generated $345 million in trading volume, surpassing Ethereum’s $288 million.

Price Meets Resistance

The token hit resistance at the $750 level this week. ZEC created its second bearish weekly candlestick since the rally began in September.

The price broke out from a long-term diagonal resistance trend line at the start of September. It then moved through the $400 horizontal resistance level.

Technical analysis shows the Relative Strength Index and Moving Average Convergence Divergence are in overbought territory. However, these indicators have not generated bearish divergences. This suggests the current decline may be a temporary correction.

Network Growth During Price Movement

The growth in shielded supply happened during the price rally. This indicates that increased attention translated into actual protocol usage. Many other cryptocurrencies see traders take positions through derivatives rather than buying the token directly.

The shielded pool growth can be compared to Ethereum’s staking dynamics. Approximately 30% of ETH is currently staked to secure the network. Both metrics reflect active participation rather than passive holding.

If the price decline continues, the $400 area may provide support. ZCash has not retested this level as support since breaking through it.

The wave count analysis shows ZEC completed an A-B-C correction pattern since July 2024. Wave C reached 4.61 times the length of wave A. This type of extreme extension is uncommon.

ZEC currently trades inside a corrective parallel channel on the daily chart. The price is in the lower portion of this channel. A breakdown from this channel would confirm the end of the parabolic upward movement.

The token’s recent performance demonstrates both growing network adoption and price volatility. The increase in shielded supply to 23% of total supply occurred as ZEC price reached seven-year highs before pulling back 30%.

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