ZEC Price Prediction: Ironwood Upgrade Puts Zcash Recovery to the Test

Zcash is entering a crucial period as its Ironwood upgrade draws closer. Scheduled for July 28, the upgrade will help reveal if any counterfeit ZEC was minted using a now-patched vulnerability that was discovered in early June.

 

The migration to Ironwood could also answer a question that has lingered since the vulnerability came to light. As users move funds into the new shielded pool, the process may reveal whether any fake ZEC was ever created. That has put the ZEC price under close watch after it recovered strongly from June’s selloff.

The charts are also at an important point. The ZEC price has climbed back to the same area where the decline began, leaving traders watching to see if buyers can finally push above resistance.

The ZEC price is back at a critical level

We had a look at the daily Zcash chart shared by Coin Bureau, and the ZEC price is trading around $500.77 after gaining 4.1% during the latest session. That places the token back at the level where the June 5 Orchard bug incident triggered heavy selling.

With news of the vulnerability enabling the possibility of minting unlimited ZEC coins, the value of ZEC fell from $500 to $380. The buyers have since taken the coin up by 31.8% to its current value close to the pre-vulnerability price.

The next challenge is obvious. A break above $500.77 will bring attention to $520, followed by $540 and $560 in case of sustained buying interest. Otherwise, the next support area will be at $477. Below that, traders will likely watch $440 and then $420.

Ironwood could bring more clarity

Away from the charts, the Ironwood upgrade is the main event for the Zcash network. This fix addresses the Orchard flaw that has been around since May 2022. According to the developers, this flaw could potentially enable creation of unlimited fake ZEC in certain scenarios, but there is no confirmation of such exploitation as yet.

Ironwood includes a new shielded pool; hence, users will need to migrate their assets. That process could reveal whether any counterfeit coins were ever created. If the migration finishes without exposing abnormal balances, it would strengthen confidence that the vulnerability was never used. Beyond answering that question, Ironwood also removes the bug, eliminating the risk going forward.

What comes next for the ZEC price?

However, the ZEC price has managed to recover almost all its losses that occurred due to the security issue in June. Yet, there is another barrier that needs to be crossed for the further recovery of ZEC price above $500.77; then $520, $540, and $560 will come into focus.

The July 28 Ironwood upgrade could also influence market sentiment. A successful migration with no evidence of counterfeit ZEC would remove a major uncertainty that has weighed on the network since the bug was disclosed. If sellers regain control, the first level to watch is $477. A move below that support could expose $440, followed by $420.

CoinCodex’s 1-month ZEC price prediction places the price at $691.05, pointing to further upside from current levels if buyers can hold above $477 support and clear the $500.77 resistance before targeting $520 and $540.

For now, the ZEC price has done the hard work of recovering from June’s selloff. The next phase depends on whether buyers can push through resistance and whether the Ironwood upgrade gives the market greater confidence in the network’s security.

 

Source:: ZEC Price Prediction: Ironwood Upgrade Puts Zcash Recovery to the Test