What is behind Zcash's recent gain in value today

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Zcash rises 10.39% today to $375

Highlights

Zcash plunged after Shielded Labs revealed a critical bug in its Orchard pool that could have enabled infinite counterfeit ZEC minting since May 2022, though no signs of exploitation were found and a prompt fix was issued.
The incident triggered over $100 million in liquidations as major holders exited, prompting developers to propose increased supply transparency and a network upgrade to rebuild trust.
Despite recent panic selling and oversold technical conditions, ZEC/USD is expected to trade between $309.02 and $473.97 in the coming week, with momentum favoring a near-term rebound.

Network confidence shaken by critical bug and large-scale liquidations

Zcash experienced significant market turmoil after Shielded Labs disclosed a critical vulnerability in its Orchard shielded transaction pool, which had existed since May 2022. This bug could have enabled attackers to mint unlimited counterfeit ZEC, but developers confirmed there is no evidence of exploitation on the mainnet and the issue was promptly fixed. The incident led to more than $100 million in liquidations and saw prominent holders exit their positions, while Zcash developers responded with proposals for a network upgrade to increase transparency and restore confidence in the token’s supply integrity.

Anton Kharitonov, expert at Traders Union, notes persistent selling pressure on Zcash. He sees the critical vulnerability disclosures and resulting liquidations as undermining sentiment and trust. The asset struggles far below its 20-day and 50-day moving averages, reflecting weak technicals. Long-term support near the 200-day remains, but momentum signals continue to show a bear-dominated market. "The latest fixes restore stability but do little to reverse the prevailing downtrend for ZEC," Kharitonov states.

Viktoras Karapetjanc, expert at Traders Union, highlights Zcash’s resilience following recent technical fixes and increased transparency proposals. He emphasizes that ZEC’s oversold state now attracts renewed buyer attention. All major weekly indicators flashing Buy or Strong Buy signal strong underlying momentum. "The bullish structure remains intact and further growth is expected as the market regains confidence," Karapetjanc asserts.

Parshwa Turakhiya, analyst, sees a tense but opportunity-rich ZEC setup after the day’s surge. He notes intraday buyers exploiting oversold readings even as broader momentum stays bearish. Volatility near 20% signals traders can benefit from swings in both directions. "Short-term setups favor quick tactical moves as the price balances oversold exhaustion and persistent doubts," Turakhiya says.

Intraday gains diverge from bearish technical signals and oversold momentum

ZEC/USD is trading well below the 20-day ($571.90) and 50-day ($488.35) moving averages, but just under the 200-day ($381.47), reinforcing persistent short- and medium-term selling pressure despite lingering long-term support. The nearest dynamic resistance is set by the Ichimoku Kijun at $463.38, with potential support forming near the 200-day average. Momentum signals show a mixed environment: the Moving Average Convergence Divergence (MACD) on the daily timeframe is neutral, and the Average Directional Index (ADX) signals an ongoing bearish trend. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all show oversold conditions, suggesting potential exhaustion among sellers. Bull/Bear Power (BBP) remains deeply negative, confirming sellers dominate intraday momentum and supporting the oversold scenario. The daily move features an upside gap of about $20.64, with the price now in the upper part of the intraday range after a 10.39% increase. Intraday volatility stands at 19.76%, and the tone confirms strength toward the highs despite the overall bearish backdrop. Divergence is present between strong intraday gains and the predominantly bearish daily momentum readings.

Previously it was reported that Zcash faced a critical vulnerability in its Orchard pool, sparking significant market turmoil and prompting developers to address transparency and trust concerns. Now, with technical indicators signaling the potential for an imminent shift in momentum, traders should watch for a decisive move above $381.47 to confirm bullish control or below $309.02 to signal renewed downside risk.

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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