- On a weekly chart, Zcash (ZEC) price plunged by around 13%, declining from $520 to $450 with a market capitalization of $7.41 billion.
- The drop in the ZEC price was witnessed after a discovery of bugs in the “Orchard” shielded privacy pool, which created selling pressure at the beginning of this month.
- In order to fix the vulnerabilities present in the Zcash network, the team is planning to deploy a major upgrade called Ironwood by late July 2026, which will introduce a new fully audited shielded pool.
Amid bearish momentum in the overall crypto market, Zcash (ZEC) price witnessed a drop of around 13% on a weekly chart following a revelation of a major bug in its “Orchard” shielded privacy pool.
At the time of writing this, Zcash (ZEC) price is hovering around $451.11 with 13.11% in the last 7 days, according to CoinMarketCap. The cryptocurrency holds a market capitalization of $7.54 billion with a daily trading volume of around $448.83 million.
Why is the Zcash Price Falling?
The drop in the ZEC price comes after a rally in May, where it soared around $670 in some trading sessions. The surge in cryptocurrency in May was supported by growing interest in privacy coins.
However, the rally in the Zcash price was resisted in early June when the price plunged by around 50% on June 5, 2026. The major reason behind the drop in the ZEC price is the disclosure of a bug in the Orchard shielded pool.
After that drop in the ZEC’s price, the cryptocurrency has witnessed a small rebound, though it has once again experienced a crash due to profit-taking after the rally in May. Traders have started booking profits after the cryptocurrency became stuck in a tight consolidation zone.
According to the price chart on TradingView, Zcash is currently stuck in a strong consolidation phase. The 50-day moving average is working as strong support. On the flip side, the 200-day moving average is an area of resistance.
Open interest in Zcash perpetuals has also plunged, which means that traders are cutting down their leveraged positions after facing a period of volatility.
The relative strength index (RSI) for the 14-day time period is currently revolving around 39 after witnessing a rally in the last month. It means that cryptocurrency is outside the overbought territory. The overall crypto market is facing a weak risk-off sentiment.
The declining moving average, such as the 200-day moving average, has created a ceiling above the current price. Zcash is facing strong resistance at around $500 and $530. It means that whenever the price reaches these levels, sellers enter the market.
Zcash Team Prepares to Deploy Ironwood Upgrade in July
Although the bug in Zcash’s Orchard shielded pool was fixed through an emergency hard fork, the vulnerability on the privacy-based network has sparked fear in the community. At some level, the bug has depleted users’ trust in the network’s supply integrity and privacy technology. The revelation of the bug has created fear among token holders, which has contributed to selling pressure even weeks after the fix was implemented.
Also, the Zcash team shared a major statement that also raised questions about the security of the funds on the network. It stated in the post on X, “What makes this particularly challenging is that, due to the privacy properties of Orchard and the nature of the bug, there is no definitive way to determine, using only cryptography, whether such exploitation occurred before the vulnerability was discovered and fixed. We believe it is important to be transparent about that uncertainty.”
In order to regain the lost trust after the bug in the shielded pool, the Zcash network is expected to deploy a major upgrade called Ironwood by late July 2026, which will introduce a new fully audited shielded pool. It will also integrate a “turnstile” mechanism in order to restore confidence in the cryptocurrency’s supply integrity. The upgrade will work as an antidote to a major vulnerability found in Zcash’s Orchard shielded pool.
Apart from this, the overall crypto market might witness another major catalyst after the truce between the U.S.-Iran war amid the ongoing peace talks. This could reduce pressure on the global energy market after Iran reopened the Strait of Hormuz. This might help the crypto market to recover from the ongoing turmoil that forced institutional investors to withdraw their investments from the cryptocurrency.
On June 17, Aztec Network suffered a cyberattack and lost around $2.165 million from its obsolete Private Rollup Bridge contract.
