Zcash has rebounded significantly from its recent lows, climbing as high as $470 in early trading after falling to a low near $250 on June 5th during broader market turmoil. According to reports from AMBCrypto, the privacy token's recovery was driven by renewed spot demand and improved market sentiment. The asset had dropped sharply due to concerns over a critical bug in its Orchard shielded pool that could have allowed unlimited counterfeit ZEC to be minted.
A major driver of the recovery is a surge in spot demand recorded between May 8th and press time. As reported by AMBCrypto, ZEC recorded net selling of $17.23 million three days ago, set against total sales of roughly $284 million that day. However, sentiment has since shifted dramatically, with over the past day netflow turning to net buying of $118.13 million, with a further $5.7 million in net buys continuing to support buyers. The 9th of June also recorded net buying, though the figure remains minimal with total buys of $99,000 in the eight hours since the trading day began.
Zcash's mining hashrate has surged over the past 24 hours, climbing 10.6% to an estimated solution rate of 17.80 GSol/s, though this remains slightly below the previous day's high of 19.68 GSol/s. According to AMBCrypto, a rising hashrate often signals that miners are committing more resources to strengthening their computational power. Community sentiment has climbed notably in recent days, with sentiment now standing at 65%, with more than 175,000 votes cast over the past day pointing to a bullish lean among investors that could continue to influence price action.
Despite the rebound, the funding rate still points to downside risk and potential for ZEC to decline, with a reading of about -0.0700% at the time of writing. As reported by AMBCrypto, a negative funding rate shows that traders in the ZEC perpetual futures market favor shorts over longs, which could weigh on the building bullish momentum and dampen the overall price outlook. However, should buyer dominance expand, ZEC could potentially reach the $500 target that no longer appears far-fetched given the current market dynamics.
