Zcash (ZEC) traded around $531 on Monday after rising about 5% over the past 24 hours, outperforming the broader crypto market. The rally came after Forbes included ZEC in its July 10 list of top cryptocurrencies, bringing renewed attention to the privacy-focused coin.
The latest gain suggests investor sentiment has improved as Zcash continues its recent recovery. However, it is still too early to confirm whether the buying momentum will last.
Zcash Faces Key Resistance
Forbes selected cryptocurrencies with a market capitalization of at least $5 billion and highlighted projects with strong utility or store-of-value potential. Zcash qualified thanks to its privacy-focused payment network and limited token supply.
According to CoinGecko, ZEC climbed nearly 5% in the last 24 hours and has gained around 15% over the past week, showing that the rally had already begun before the Forbes recognition.
Technically, Zcash is approaching an important resistance zone between $540 and $547. A daily close above this range could open the door for a move toward $595. On the downside, if the price falls below $500, support around $478 could become the next target.
Investors are also watching the release of the U.S. Consumer Price Index (CPI) for June on Tuesday. Any sharp movement in Bitcoin following the inflation data could also affect Zcash and the broader crypto market.
Limited Supply Supports the Rally
Zcash’s limited supply continues to support the bullish outlook. By early June, about 5.1 million ZEC were held in shielded addresses, representing nearly one-third of the circulating supply. While these coins can still be sold, they are less visible on exchanges, which may reduce available trading supply.
The network’s November 2024 halving also reduced block rewards from 3.125 ZEC to 1.5625 ZEC, slowing the creation of new coins and strengthening Zcash’s scarcity narrative.
Over the past year, ZEC has surged more than 1,100%, although the rally has experienced several sharp pullbacks.
Orchard Security Issue Still Raises Concerns
Despite the strong recovery, concerns remain over the Orchard vulnerability discovered in late May.
Researcher Taylor Hornby identified the flaw on May 29, and developers said it could have allowed attackers to create unlimited counterfeit ZEC within the Orchard system without being detected.
The issue was fixed within days, but because of Zcash’s privacy features, developers cannot completely verify whether the vulnerability was ever exploited. So far, there is no public evidence that any attack occurred, but it also cannot be ruled out entirely.
Research from Allium Research found that Zcash trading volume increased 12 to 13 times above normal on May 26, several days before the vulnerability was privately reported. Some traders also opened profitable short positions before the issue became public, leading to speculation about possible early knowledge.
However, the available data does not prove insider trading, as every short position is matched by a long position in futures markets.
Regulatory Outlook
Zcash has also benefited from easing regulatory pressure in the United States. In January, the U.S. Securities and Exchange Commission (SEC) closed its investigation into the Zcash Foundation without taking enforcement action.
Meanwhile, Europe could become more challenging. Under new EU anti-money-laundering (AML) rules, crypto service providers will face restrictions on offering services involving privacy-enhancing cryptocurrencies. Those rules are expected to take effect in July 2027.
