$ZEC #MyGateTradeStory

ZEC is currently trading between $407 and $430. It increased by 3.61% in the last 24 hours. Volume has risen significantly. But while monitoring this asset, I am more concerned with the events of the past two weeks than the price movements.
Because Zcash just faced one of the most interesting security crises in crypto history earlier this month. And how this crisis was managed tells us something much more important than where the price is headed.
May 29, 2026. Security researcher Taylor Hornby discovered a critical vulnerability in the Orchard privacy pool. He used AI tools to find the flaw. This vulnerability has been in the system since May 2022, from Orchard’s very first days. It remained hidden for four years.
The technical detail of the flaw is as follows. There was a soundness error in Orchard’s zero-knowledge proof circuit. This error could allow an attacker to perform double-spending within the shielded pool without detection. It couldn’t inflate the total ZEC supply because the turnstile mechanism prevents that. But it would make the integrity of Orchard balances questionable.
Zcash founder Zooko Wilcox summarized the situation as follows: Due to Orchard’s privacy features, it is cryptographically impossible to prove whether this vulnerability was exploited before the patch.
This statement shook the market. When it was publicly announced on June 5, ZEC dropped between 30% and 50%. It fell to between $250 and $309. For an asset that recently traded between $635 and $680, this collapse was severe.
But then, something interesting happened.
Developers released an emergency software update on June 1. On June 2, they temporarily halted Orchard transactions. On June 3, they patched the vulnerability with the NU6.2 emergency update and reactivated Orchard transactions. All this was completed in five days.
Josh Swihart, founder of the Zcash Open Development Laboratory, described this intervention as the most critical network update in Zcash history.
How the market interpreted the patch: On June 3, when the update was made, ZEC rose above $600. While the broader crypto market was falling, ZEC increased. This indicates that investors saw the developer response not as panic but as a sign of confidence.
On June 12, Zcash’s founder announced that an advanced AI audit requested by Shielded Labs found no new serious errors in the protocol. This statement helped push the price from the dip around $300 to over $410.
But honesty is necessary here.
The biggest daily surge was recorded on June 5. About 157,000 ZEC were withdrawn from privacy pools in a single day. Some of this was normal user panic. But some of it raises questions. In an environment where cryptographically verifying the integrity of Orchard balances is impossible, which investor can be sure that what they hold is real ZEC?
Shielded Labs noticed this issue and proposed a solution: a new turnstile mechanism for Orchard and an expanded supply verification infrastructure. This proposal has not yet been approved, but it’s a step in the right direction.
Now, looking at the big picture.
Before this crisis, Zcash was gaining strong momentum. Gemini launched ZEC credit card rewards in May, with a 110% increase over thirty days. Multicoin Capital’s founder announced they had established a ZEC position since February. Arthur Hayes said he kept Zcash in his core portfolio. Zcash ranked eighth on Fortune’s first Crypto 100 list.
And NU7 update is coming. The testnet went live on May 22. A 300% speed increase for shielded transactions is targeted. Block time will decrease from 75 seconds to 25 seconds. Zcash Shielded Assets feature will be added for user-created private tokens. And Orchard Quantum Recoverability is outlining a post-quantum security roadmap. This claims to be the first major crypto project to offer a concrete post-quantum security plan in this field.
On the regulatory side, the picture is mixed. The SEC investigation in the US was closed in January 2026 without any action. This is a green light for institutional participation. But Dubai DIFC imposed a ban in January 2026. India’s Financial Intelligence Unit restricted access. These two markets hold significant weight in the global crypto liquidity.
Where does the technical picture stand amid all this?
RSI is at 43.5, in the weak zone. Daily MA7 is below MA30, and MA30 is below MA120, so the trend is still downward. But on the 4-hour chart, there is a MACD divergence at the bottom, and on the 15-minute chart, a short-term bullish alignment has formed. CCI and WR are in overbought zones, indicating possible short-term pullback pressure. Critical support levels are around $390 to $400.
I am watching Zcash but have not taken a position. I continue to observe.
I think: This crisis did not show Zcash’s worst outcome. If Orchard had truly been exploited and it couldn’t be proven, the protocol’s future would be seriously questioned. But developers responded within five days, the patch went live, the audit came back clean, and the price hit lows but did not collapse.
Dealing with a security crisis at this speed and transparency is not something every development team can do.
NU7 mainnet activation is planned for the end of the year. Quantum-resistant wallets are coming in July. The proposed turnstile update for supply integrity is in approval process.
If any of these three developments materialize, the $400 to $430 range will look very different.

This content is for informational purposes only and does not constitute financial advice.