Zcash price stalls below $400 as traders eye breakout above key resistance

Zcash price has remained pinned below the $400 level after last month’s Orchard security scare, persistent overhead supply, and cautious derivatives positioning offset signs of improving buying pressure.

Zcash ( $ZEC ) traded around $396 at the time of writing, little changed over the past week despite a relief bounce across several large-cap altcoins.

The privacy coin continues to recover from its violent early June collapse, when a critical flaw in the Orchard zero-knowledge proof circuit briefly raised double-spending concerns before developers deployed an emergency network upgrade. Although no funds were stolen, the event triggered a wave of liquidation and institutional selling that continues to weigh on price.

The fallout extended beyond the technical fix. Arthur Hayes exited his ZEC position during the panic, while the earlier 50% crash from roughly $624 to $309 left a large concentration of trapped holders at higher prices. That supply continues to emerge whenever ZEC approaches the $400-$420 region, limiting follow-through buying despite the stabilization seen during the past several sessions.

Descending trendline keeps Zcash trapped below key Fibonacci resistance

The daily chart shows ZEC trading just beneath the 61.8% Fibonacci retracement level near $419, a zone that rejected multiple recovery attempts following the June breakdown. Price also remains below a descending trendline that has defined the lower-high structure since the post-crash rebound peaked near $530 in mid-June.

Momentum indicators remain mixed. The daily RSI sits near 41, leaving room for another recovery attempt without entering overbought territory, while the MACD remains below its signal line despite the bearish histogram steadily shrinking. Together, the indicators suggest selling pressure has eased but buyers have yet to regain control of the longer-term trend.

The 4-hour chart presents a slightly more constructive picture. ZEC has begun testing the descending resistance line that has capped every rally over the past two weeks, while the Chaikin Money Flow has climbed back above zero, suggesting fresh capital has started entering the market. Even so, the Aroon indicator continues to favor the prevailing downtrend, showing that bullish momentum has not yet replaced the existing market structure.

#ZEC