Zcash Prices Approach Critical Support After Soundness Flaw Fears

Zcash's recent price drop has brought it back to a major support zone, with technical indicators suggesting growing downside risk. The privacy-focused cryptocurrency has fallen about 15% from its June 18 high around $500, and is now approaching the critical $400 support level.

The decline comes weeks after developers revealed a soundness flaw in Zcash's Orchard shielded pool that theoretically could have allowed undetectable supply inflation. Although the issue was patched through an emergency upgrade, uncertainty surrounding whether the flaw had ever been exploited continues to weigh on sentiment.

Buyers have struggled to maintain momentum above major resistance levels, while conditions across the crypto market remain unfavorable. Bitcoin's recent breakdown below key support zones triggered widespread liquidations and reduced risk appetite among traders.

A break below the $400-$401 region would expose the next major Fibonacci support near $343, representing a potential decline of roughly 15% from current levels. Momentum indicators continue to favor sellers, with the Relative Strength Index at around 34 and the MACD in bearish alignment.