invezz.com 
Zcash ($ZEC) is up by 7% in the last 24 hours, extending its recovery above the $500 level as traders reacted positively to the network's upcoming Ironwood shielded pool upgrade.
Growing optimism surrounding the privacy-focused blockchain has fueled increased activity in the derivatives market, with retail investors driving a sharp rise in futures positions.
If bullish momentum continues, $ZEC could challenge a major technical resistance level around $520, bringing its swing high of $690 back into focus.
Ironwood Shielded Pool Upgrade strengthens confidence
Zcash developer Sean Bowe announced that the Ironwood shielded pool is scheduled to go live on the mainnet at block height 3,428,143, expected around July 28, with support from key organizations across the ecosystem.
Ironwood will replace the current Orchard shielded pool as the primary destination for newly shielded funds.
While the existing Orchard pool will remain operational for spending purposes, its role will be limited to preserving the integrity of Zcash's verifiable circulating supply.
The upgrade comes after developers addressed a recently discovered counterfeiting vulnerability affecting the Orchard pool.
Ironwood introduces several security improvements, including:
- Formal verification of critical components.
- Independent security audits.
- Quantum-recoverable note formats.
- Enhanced protections for the shielded transaction system.
The improvements are expected to strengthen trust in Zcash's privacy infrastructure while reinforcing confidence in the network's long-term security.
The upcoming network upgrade has coincided with a surge in derivatives activity, highlighting renewed retail interest in $ZEC.
According to CoinGlass, Zcash futures Open Interest (OI) climbed 22% over the past 24 hours to approximately $983 million, suggesting fresh capital is entering the market and traders are building new positions.
Trading activity also strengthened, with derivatives volume rising nearly 15% to$1.8 billion during the same period.
Meanwhile, the funding rate turned more positive, reaching 0.0105%, indicating that traders are increasingly willing to pay a premium to maintain long positions—another sign of improving bullish sentiment.
If broader cryptocurrency market conditions remain supportive despite ongoing geopolitical uncertainty, the renewed retail participation could continue driving momentum upward.
$ZEC technical outlook: Can bulls push above $520?
$ZEC continues to trade well above its major moving averages, maintaining a constructive technical outlook.
The token remains comfortably above both the 50-day Exponential Moving Average (EMA) at around $457 and the 200-day Exponential Moving Average (EMA) at around $388
After hitting the $500 psychological level, the next major resistance lies at the retracement zone near $520.
A decisive daily close above this resistance could trigger another wave of buying pressure, potentially sending $ZEC back toward its all-time high of $690 and opening the door to fresh price discovery.
Momentum indicators continue to favor buyers. The Relative Strength Index (RSI) sits at 66, signaling strengthening buying momentum.
At the same time, the Moving Average Convergence Divergence (MACD) has crossed into positive territory, further supporting the bullish outlook.
On the upside, traders will be watching the $520 Fibonacci resistance closely. A successful breakout could pave the way for a move toward $690.
On the downside, initial support is located around the former triangle resistance near $460, which aligns closely with the 50-day EMA at $457.
If sellers regain control below this zone, $ZEC could retreat toward the 200-day EMA near $388, where stronger long-term support is expected.
