Zcash (ZEC) recorded a sharp correction over the last 24 hours, declining nearly 30% as selling pressure increased due to a critical vulnerability in the network’s Orchard privacy pool.
Santiment data shows that whales turned bearish around $536.6, followed by retail investors near $518.9. With both groups expecting further downside, selling activity increased, and ZEC moved lower. Traders closely monitor whale sentiment because it has often provided early signals of market direction.
Why is the Zcash price crashing?
The vulnerability disclosure became the main catalyst for the selloff. Although the issue was fixed, the exploit has created uncertainty around the network at a time when ZEC had recently rallied above $500. The market response was reflected in a rapid deterioration in sentiment and increased selling activity.
Other factors include :
- Aggressive profit-taking after a strong upward move.
- Concerns about a breakdown below key technical support levels.
- Increased market uncertainty following recent network-related developments.
- Bearish sentiment from both whale and retail participants.
The selloff accelerated as both whale and retail sentiment turned bearish, adding further pressure to the price.
For traders, the focus shifted from Zcash’s recent price strength to the potential impact of the vulnerability on network confidence and future demand.
How Low Will ZEC Price Drop?
The vulnerability disclosure was followed by a bearish shift in market positioning. Traders began targeting lower support levels as momentum indicators and order-flow signals turned negative. The $429-$440 region is a potential resistance zone, with expectations that any rebound into that area could attract fresh selling.
Current downside targets being monitored by traders include $400-$390, followed by $370 and $342 if selling pressure persists.
Key ZEC Price Levels to Watch
Several technical levels are likely to influence the next move in Zcash Price:
Support Levels
- $360: Critical support level. Holding above this zone could prevent a deeper correction.
- $342: Secondary downside target if selling pressure continues.
- $400-$390: Intermediate support area that may attract buyers during further weakness.
Resistance Levels
- $429-$440: Previous fair value gap (FVG) and minor structure zone. Traders are watching for potential bearish rejection if price retests this area.
- $449: The first level that would indicate selling pressure is beginning to ease.
- $486: A close above this level would weaken the current bearish outlook.
- $502-$511: Major recovery zone. Reclaiming and holding above this range would strengthen the bullish case and could shift market sentiment.
Should you sell Zcash (ZEC)?
The vulnerability has led some well-known crypto investors to sell their ZEC holdings. Arthur Hayes said he sold his entire ZEC position after reviewing the issue. He explained that while he believes abuse of the vulnerability is unlikely, the fact that it cannot be completely ruled out was enough for him to exit. Hayes added that he could buy back into ZEC in the future if new information changes his view. His comments added to the selling pressure already seen in the market following the disclosure.
For ZEC holders, the main question is whether the recent vulnerability will have a lasting impact on trust in the network. Some traders are choosing to sell because they believe the incident could make it harder for Zcash to attract new users and investors. Others are waiting for more information, noting that the issue was fixed and no misuse has been confirmed. For now, ZEC’s price is likely to depend on whether the project can rebuild trust and convince the market that the issue has been fully resolved.
