Time for another $ZEC short squeeze?
Okay, can we have another $ZECUSDTM run from here?
$ZEC is squeezing inside a falling wedge, but momentum just flipped. #Zcash has just printed a fine bullish crossover on the 4H chart after weeks of negative momentum. The RSI is also showing signs of real momentum coming into the token, signifying a pullback has started.
On the longer timeframe, $ZEC has been carving a broad ascending triangle since mid-June, with a rising support line off the June lows near $350, but on the short term, $ZEC is currently bullish, with the price now testing $475, a crucial price level to determine if it’d break the upper boundary of the descending trendline that formed from its $589 high roughly one week ago.
A break and hold above this upper trendline, with MACD and RSI both confirming, is the signal that the pullback is over and the larger uptrend is resuming.
The fundamental backdrop is that Zcash researchers completed formal verification of Ironwood, the network's new shielded pool, publishing a machine-checked proof to establish that Ironwood can't pay out more ZEC than has publicly entered it under its stated cryptographic assumptions.
That directly answers the vulnerability discovered in the older Orchard pool, which developers said could theoretically have allowed undetectable counterfeiting, though they found no evidence it was ever exploited.
Alongside the proof, 129,396 $ZEC (worth about $60M) has already migrated into Ironwood through the turnstile accounting checkpoint that's designed to block any hypothetical excess coins from crossing over. Founder Zooko Wilcox also pushed back publicly on claims that ZEC's supply couldn't be verified until the migration fully completes, saying users can check the current total supply, 16,848,458 $ZEC, on their own machines right now.
Well, for traders, what matters is that $ZEC clears the descending trendline and pushes back toward the broader triangle's descending resistance line and the $575 high as an illustrative next test. Renewed confidence in supply integrity gives the move a fundamental tailwind on top of the technical setup.
The MACD cross and the RSI-over-MA flip are both fresh, and they're happening right at channel resistance; that's the setup worth watching here.