- The Zcash price poised for 15% drop to $194 support, as the asset witnessed renewed selling pressure at wedge pattern resistance.
- Morgan Stanley submitted an updated S-1 filing for a spot Zcash ETF, adding Fidelity as a custodian alongside Coinbase Custody and BNY Mellon.
- The coin price back below the daily exponential moving averages (20, 50, 100, and 200) indicating the market sentiment supports prolonged correction.
ZEC, the native cryptocurrency of Zcash shows low volatility trading around $236 floor on Friday March 20th. Earlier today, the coin price attempted a bullish breakout from the $250 resistance but witnessed an immediate reversal which created a long-wick rejection candle in the daily chart. Despite overhead supply, Zcash recorded sustained on-chain privacy adoption, which bolstered its underlying value rather than just market hype.
Zcash Sees Surge in Shielded Pools as Privacy Adoption Accelerates
Zcash, the leading privacy-focused cryptocurrency, recorded a steady growth of ZEC tokens held in shielded pools over the past five years. In a recent tweet, market analyst eyezenhour highlighted that more of the asset supply is moving into the network’s privacy layer rather than remaining in the transparent circulation.
By the last quarter of 2025 approximately 5.07 million ZEC in shielded pools which equates to 30.8% of the total circulating supply. This figure represents a multi-year trend toward migration in privacy features with the percentage increasing sharply in 2025 from previous levels of around 10-11%.
In Q4 alone, shielded transactions grew more than 224% quarter over quarter to more than 156,000. The anonymity set grew by about 407,686 net-new notes, mostly in Orchard which far outpaced activity in other pools. This influx extended the range of shielded outputs, improving the overall privacy of participants by dispersing traceability.
These developments align with continuous improvements for user tools such as mobile wallets– Zodl, that ease the process of accessing shielded transfers and other services such as swaps. While the transaction volumes and holdings have increased, fully shielded end-to-end flows are a smaller subset in comparison to movements into/out of the privacy layer.
Thus, ZEC’s governance utility is also evolving steadily, with tokens holders voting becoming increasingly central to protocol decision-making.
This shift builds stronger coordination frameworks over the network which bolster the alignment between developers, users, and long-term capital.
Analysts believe the Zcash price will eventually follow the substantial growth of shielded pools.
Zcash Price Poised for 15% Decline With Wedge Setup
In the last four days, the Zcash price witnessed V-top reversal from $290 to $232 current trading value, registering a loss of 20%. Interestingly, the reversal is positioned at the combined resistance of the 200-day EMA and the resistance trendline of the falling wedge pattern in the daily chart.
Since November 2025, the coin price has been gradually declining with the two converging trendlines of the wedge pattern, offering dynamic resistance and support. The recent history of this pattern shows that the previous retest to the overhead trendline has recouped the bearish momentum in price and led to significant market correction.
With sustained selling, the Zcash could plunge 15% and challenge the bottom trendline at $194, followed by an extended leap of $121.5.
Alternatively, the ZEC buyers must breach the key resistance trendline of the wedge setup to recoup growth grip over this asset.
