Zcash Faces Market Pressure Amid Orchard Pool Bug Disclosure

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

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Bug Disclosure: Zcash founder Zooko Wilcox disclosed that security researcher Taylor Hornby found a bug in the Orchard pool on May 29, which could be exploited to create unlimited counterfeit ZEC, leading to decreased market confidence.
Emergency Fix: The Zcash Open Development Lab, along with ecosystem teams, responded quickly, implementing a fix by June 2 after an upgrade process, although verification of prior exploit usage remains necessary.
Market Reaction: BitMEX co-founder Arthur Hayes sold his entire ZEC position, linking his decision to the Orchard bug disclosure, which undermined his privacy thesis for the asset, resulting in a 30% drop in ZEC's price.
Future Upgrade Plans: Shielded Labs is exploring a network upgrade to allow users to verify Zcash supply, proposing a new shielded pool and turnstile accounting to ensure no counterfeit ZEC remains in Orchard, pending community support.

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Technical Analysis for ZEC

Technical Sentiment Analysis for Zcash (ZEC). As of , Zcash (ZEC) is exhibiting a Strong sell technical sentiment. Our proprietary analysis, which aggregates 10 technical signals, shows that 3 indicators are flashing buy, while 7 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ZEC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, ZEC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Zcash (ZEC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	-92.827	78.646	301.563	473.036	695.953	867.426	1090.343
Fibonacci	78.646	229.303	322.379	473.036	623.693	716.769	867.426

About ZEC

Zcash is a decentralized cryptocurrency focused on privacy and anonymity. It uses the zk-SNARK zero-knowledge proof technology that allows nodes on the network to verify transactions without revealing any sensitive information about those transactions.Contrary to a common misunderstanding, the majority of cryptocurrencies on the market, including Bitcoin (BTC), are not anonymous, but rather pseudonymous; while they do not explicitly reveal the identities of their users, each user has their own public address or addresses which can be traced back to them via the methods of data science and blockchain forensics.Zcash transactions, on the other hand, still have to be relayed via a public blockchain, but unlike pseudonymous cryptocurrencies, ZEC transactions by default do not reveal the sending and receiving addresses or the amount being sent. There is an option, however, to reveal this data for the purposes of auditing or regulatory compliance.Zcash was first released on October 28, 2016, and it was originally based on Bitcoin’s codebase.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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