Why is Zcash price down today?

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Zcash slides 11.72% today on selloff

Highlights

Zcash developers rapidly patched a critical Orchard shielded pool vulnerability that threatened counterfeit ZEC creation after public disclosure.
A large withdrawal of about 1% of ZEC supply from the pool and proposals for a new Ironwood pool followed the incident, but selling pressure persisted.
ZEC trades under key short- and medium-term technical resistance with strong bearish momentum, though models forecast stabilization above $370 and a high probability of an upward reversal if support holds.

Critical vulnerability disclosure sparks sentiment shift and large withdrawals

Zcash experienced a sharp drop in sentiment following the public disclosure of a critical vulnerability in its Orchard shielded pool, which could have potentially enabled the creation of counterfeit ZEC. The issue was promptly addressed by developers after its discovery by a security researcher with AI support, resulting in an emergency fix. This incident was accompanied by a large withdrawal equivalent to about 1% of the ZEC supply in the pool, and triggered proposals for migrating to a new Ironwood shielded pool to improve supply verifiability, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes that Zcash trades below its 20- and 50-day moving averages, exposing vulnerability to further declines. He highlights that the recent Orchard vulnerability and emergency fix significantly hurt sentiment and intensified selling. Technical readings confirm persistent downside with all daily indicators flashing bearish signals. Kharitonov points out that failure to hold above the 200-day moving average could trigger a sharper drop toward $368. "Given these conditions, I would remain cautious and avoid Zcash until stabilization above the key long-term support is confirmed," he warns.

Viktoras Karapetjanc, expert at Traders Union, believes the Zcash market presents attractive setups despite recent volatility. He sees the swift developer response and migration proposals as evidence of long-term resilience and healthy network fundamentals. With key weekly indicators turning positive, Karapetjanc expects stabilization and a renewed push towards $486.51. "For proactive traders, the bullish structure remains intact and the market offers multiple opportunities in the coming week," he says.

Bearish momentum persists as key technical supports face pressure

Momentum signals on the daily timeframe remain negative: both the MACD and ADX point to a bearish bias. The RSI remains under 41, indicating ongoing downside pressure, while the CCI also shows weakness and the Stochastic RSI is neutral. Bull/Bear Power (BBP) suggests sellers dominate intraday momentum and the oversold reading confirms current pressure. The nearest dynamic resistance is at the Ichimoku Kijun ($470.06); holding above the 200-day MA could prevent deeper declines.

Previously it was reported that Zcash faced persistent short- and medium-term bearish momentum following the disclosure and resolution of a critical Orchard pool vulnerability, despite swift developer intervention. This latest analysis strengthens that view with elevated volatility and continued downside pressure, but highlights that a decisive move above resistance could catalyze a shift to a bullish trend, making $470.06 the key level to watch in the days ahead.

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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