Zcash price jumped 16% to around $420 last weekend, clawing back some of last week’s losses that cut its value in half. ZEC coin has made a comeback, but the reasons behind the drop and the quick rebound raise a key question: Is this recovery real, or just a temporary bounce after a big sell-off?
The selloff highlighted a key problem for privacy coins. A counterfeiting flaw in Orchard, Zcash’s most advanced shielded pool, went unnoticed from May 2022 until a Shielded Labs audit discovered it in late May, according to BanklessTimes last week.
If left unaddressed, the flaw could have allowed someone to create fake ZEC coins that would be impossible to detect, thereby undermining the asset’s main purpose. Developers responded quickly by disabling Orchard with an emergency soft fork on June 2, when Zcash was trading near $587. The next day, they re-enabled it with the NU6.2 hard fork, which included a fix.
During the repair, the Zcash price briefly spiked to almost $629, but then dropped all the way below $270 on June 5 after falling through support. The blockchain kept running, but there is still debate about whether anyone actually exploited the bug. This uncertainty continues to affect Zcash crypto.
Zcash Price Fails to Reclaim $500 Neckline as Resistance Holds
Zcash price is now above its long-term 200-day averages, but the shorter moving averages still show a sell signal, and the earlier trend has clearly lost strength.
Analyst Ardi explained that after losing several support levels, ZEC lost nearly all of its multi-month rally in just a few days and fell back to the April breakout point near $250.
He sees the current move as a relief rally and expects ZEC to rise into the $430 to $480 resistance range. However, if $350 does not hold, the price could drop again.
This situation is a clear test for Zcash’s value proposition. While ZEC has bounced back to this level, strong resistance above, short-term momentum, and ongoing doubts about supply integrity all suggest the recovery is fragile.
Although Zcash is climbing back above $400 after a sharp drop, the chart still looks weak. The price formed a head-and-shoulders top near $700, broke below the $500 neckline, and fell into the $300 support zone. There, buyers stepped in strongly, leaving a long lower wick.
The rebound has improved short-term sentiment, but $500 is now a key resistance level. Until ZEC moves above it, the bearish trend remains. Meanwhile, with ADX rising to about 28.6, the next move could be sharp.
The main question is whether this is a real recovery or a bull trap before another drop, and the $300 floor and $500 ceiling will decide the next Zcash price levels.
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