Zcash Fights Off Bears as Arthur Hayes’ $1K ZEC Price Target Looms

Zcash (ZEC) is showing signs of recovery after a sharp sell-off in June. Arthur Hayes, co-founder of BitMEX, had previously set a price target of $1,000 for ZEC, but exited the token following the crash. As of August 18, ZEC was trading near $511, up around 5% for the day and above its major moving averages. Buyers have been supporting the $490-$500 range since late July.

ZEC's price plummeted more than 50% on June 5, dropping from approximately $630 to near $310 following the disclosure of a critical vulnerability in Zcash's Orchard shielded pool. However, an emergency fix was implemented on June 1, and prices rebounded sharply, climbing over 100% from the June low. Hayes had sold his entire ZEC position on June 5, citing the inability to prove the lack of improper minting, which undermined the privacy thesis behind his investment.

The market has largely absorbed the panic surrounding the Orchard disclosure and Hayes' ZEC sell-off. ZEC's weekly chart is displaying a strong bullish structure, potentially forming a cup-and-handle pattern if the early June downside wick is considered an outlier. A breakout above the neckline resistance of $750-$775 could confirm the pattern and bring $1,000 back into play as a near-term upside target, perhaps by the end of 2026.

Nonetheless, ZEC's price action suggests that the June crash may have been a temporary setback rather than a lasting trend. The primary risk for ZEC currently stems from the macro environment, with elevated US Treasury yields and inflationary pressures. Additionally, rising global yields and potential further tightening by the Federal Reserve and the Bank of Japan may weaken ZEC's breakout setup.