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Zcash has extended its recovery after developers completed an emergency network upgrade linked to a critical Orchard vulnerability. ZEC rose about 10% over 24 hours to nearly $426, marking a rebound from its June 5 low near $250.
The recovery comes as network data shows lower activity, large shielded-pool withdrawals, and divided whale behaviour. Traders are also watching whether ZEC can remain above the key $390 to $400 support zone.
Zcash Open Development Labs founder Josh Swihart described the response as the “most consequential network upgrade in Zcash history.” His statement followed the coordinated release of several urgent software updates.
Security researcher Taylor Hornby privately disclosed the Orchard flaw on May 29. According to available details, the bug had existed since the privacy pool launched on May 31, 2022.
The flaw could have allowed an attacker to create counterfeit ZEC inside Orchard. Such activity may not have produced a visible on-chain record. However, developers and security groups have not confirmed that anyone exploited the weakness.
Zcash developers first released version 6.12.5 alongside a soft fork on June 2. That update temporarily disabled Orchard transactions and fixed a separate issue that could crash nodes. The NU6.2 upgrade followed on June 3 at mainnet block 3,364,600. Developers said the update repaired the privately disclosed circuit flaw and restored Orchard transactions.
Despite the repair, Zcash recorded major movements from its shielded pools. About 157,931 ZEC left the privacy pools on June 5, marking the largest daily outflow since January 2. Those withdrawals arrived as the public disclosure raised questions over Orchard’s balance integrity. Holders moved funds away from the privacy layer affected by the vulnerability.
Trading activity also increased sharply. ZEC spot volume reached about $3.76 billion on June 6, compared with a 30-day daily average near $899.5 million. Wrapped ZEC trading also climbed on decentralized exchanges. Trades reached 17,401 on June 5 before falling sharply as the first wave of selling and repositioning eased.
Meanwhile, Shielded Labs, the Zcash Foundation, and ZODL have proposed the Ironwood upgrade. The plan would create a new shielded pool and move users away from the repaired Orchard system. The proposal would also allow node operators to check balances across pools. This feature aims to provide clearer verification of the total ZEC supply.
Zcash network activity has weakened despite the sharp price rebound. Daily transactions remain on a declining seven-day trend after reaching 38,515 on May 15. Active addresses briefly jumped to 10,422 on June 5. However, the number later returned to nearly 5,000 per day as activity linked to the disclosure slowed.
Over the past 90 days, ZEC has gained about 106%. During the same period, transactions have fallen approximately 11%, while active addresses have increased by less than 9%. This gap shows that price growth has moved faster than network use.
Nevertheless, spot flows suggest some buyers returned after the early June sell-off. Whale data remains mixed. Standard whale wallets reduced their holdings by about 8.9%, while the 100 largest addresses increased their balances by roughly 4%.
ZEC has reclaimed the $390 to $400 area and moved above its 200-day moving average. Buyers are now testing resistance near $450 following the rapid rebound.
Open interest has fallen from almost $800 million to about $418 million. The decline shows that traders closed or lost many leveraged futures positions during the sell-off. Funding rates have remained slightly positive despite the drop in open interest. This suggests traders have not moved heavily toward short positions.
A confirmed move above $450 could bring the $550 area into focus. Further resistance sits near $600 to $650, where sellers previously limited recovery attempts. However, a fall below $390 could expose support near $350. The June low around $250 to $304 would remain the next major area below that level.
Also Read: Crypto News Today: ZCash Jumps 10%, XRP ETF Inflows, and ETH Exchange Supply Decreases
