Zcash (ZEC) has suffered a sharp correction over the past 24 hours, falling nearly 30% as selling pressure intensified following the disclosure of a critical vulnerability in the network’s Orchard Privacy Pool.
According to Santiment data, whale investors turned bearish when ZEC was trading around $536.6. Retail traders soon followed near the $518.9 level. As both groups anticipated further downside, selling activity increased and pushed the cryptocurrency significantly lower.
Why Is Zcash Price Falling?
The disclosure of the security vulnerability became the primary trigger behind the selloff. Although the issue has already been fixed by developers, concerns about the potential exploit created uncertainty among investors. The news emerged shortly after ZEC had rallied above the $500 mark, making the market reaction even more pronounced.
Sentiment deteriorated rapidly as both whale and retail investors reduced their exposure to the asset, adding further downward pressure on the price.
For traders, attention has shifted away from Zcash’s recent bullish momentum and toward the potential long-term impact of the vulnerability on user confidence and future demand for the cryptocurrency.
How Low Could ZEC Fall?
Following the disclosure, market sentiment turned increasingly bearish. Traders began targeting lower support levels as momentum indicators and order-flow signals weakened.
The $429–$440 range is now viewed as a key resistance zone. If ZEC rebounds toward that area, many market participants expect renewed selling pressure to emerge.
Current downside targets being monitored by traders include the $400–$390 range. If selling pressure continues, the next support levels could be around $370 and potentially $342.
Should Investors Sell ZEC?
The security issue has prompted some prominent crypto investors to exit their positions. Among them is Arthur Hayes, who revealed that he sold his entire ZEC holding after reviewing the vulnerability.
Hayes stated that while he believes the likelihood of the exploit being abused is low, the risk could not be completely ruled out. As a result, he chose to exit his position for now. However, he noted that he may consider buying back into ZEC if future developments provide greater clarity and restore confidence.
His comments added to the selling pressure that had already emerged following the vulnerability disclosure.
For ZEC holders, the key question is whether the incident will have a lasting impact on trust in the Zcash network. Some investors have chosen to sell, fearing that the event could make it more difficult for Zcash to attract new users and capital. Others are taking a wait-and-see approach, pointing out that the issue has been fixed and no confirmed misuse has been reported.
For now, ZEC’s price outlook will likely depend on whether the project can rebuild market confidence and convince investors that the vulnerability has been fully resolved.
