ZCash price dips amid rising selling pressure

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Zcash slides 37.67% today to $374.89

Highlights

A critical vulnerability in Zcash's Orchard pool was discovered and quickly patched, averting any supply inflation or value loss.
Major investors exited ZEC holdings and foundations are now proposing a network upgrade to enable verifiable supply tracking.
ZEC trades well below key moving averages with high volatility, with a forecasted range of $282.20 to $513.92 and likely consolidation.

Investor exits and upgrade proposals follow supply vulnerability patch

In late May 2026, a critical vulnerability was discovered in Zcash's Orchard shielded transaction pool that could have theoretically allowed unlimited counterfeit ZEC minting, though the 'turnstile' mechanism prevented total supply inflation. This issue was disclosed, patched quickly with an emergency network upgrade by June 2, and no exploitation or unauthorized value creation was detected. The event prompted prominent investors to exit their holdings and led to proposals by Shielded Labs and the Zcash Foundation for a network upgrade to enable public verification of ZEC supply, subject to community approval, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, observes that Zcash is under extreme selling pressure after plunging over 37% and failing to hold above key moving averages. He highlights that the recent vulnerability crisis shook market sentiment, prompting heavy outflows and sparking significant downside gaps. The technical chart shows a cluster of resistance, with oversold intraday signals offering scant comfort amid persistent volume-driven selling. Kharitonov notes that the bullish MACD reading is offset by negative momentum in both the ADX and RSI, implying that seller dominance may persist. As he sees substantial risks at play from technical and news-driven angles, he cautions: "Despite swift vulnerability patching, confidence in ZEC remains deeply damaged, and further downside cannot be dismissed until strong accumulation emerges."

Viktoras Karapetjanc, expert at Traders Union, points out that despite recent volatility, Zcash offers fresh opportunities for growth. He sees robust weekly indicator alignment, with all four key metrics flashing bullish, which underpins potential for price recovery. The swift response to the network’s vulnerability and proposals for improved transparency strengthen institutional trust. Karapetjanc anticipates upward momentum to return as the market consolidates. He confidently states: "The bullish structure remains intact — I expect further growth with ZEC regaining investor interest as technical and governance reforms take effect."

Mixed momentum signals amid oversold readings and technical resistance

ZEC/USD trades sharply below its MA-20 ($576.31), MA-50 ($486.69), and just under the MA-200 ($382.41), signaling pronounced short- and medium-term selling pressure. The nearest dynamic resistance is the Ichimoku Kijun line at $551.10, with MA-200 offering initial long-term support below the market. Momentum readings are mixed. The Moving Average Convergence Divergence (MACD) suggests strong buy, yet the Average Directional Index (ADX) and Relative Strength Index (RSI) both favor sellers, with the latter reading 38.28. Stochastic RSI and Commodity Channel Index (CCI) indicate oversold conditions, while Bull/Bear Power (BBP) shows buyers remain dominant intraday, but notes overbought risk. The pair experienced a significant downside gap of about $144.06 and has dropped 37.67% to $374.89, holding near the daily low as intraday volatility stands at 25.36%. This severe move points to heavy pressure after the open. AO offers a neutral bias and, overall, short-term oscillators diverge sharply from medium-term momentum signals.

Previously it was reported that decisive protocol upgrades and robust technical momentum reinforced a broadly bullish trend for Zcash despite short-term volatility. The current article signals a material shift in sentiment and risk profile, with traders now advised to closely monitor the $282.20 support and $513.92 resistance as pivotal levels for near-term positioning.

Source of Data: ZEC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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