Zcash Price Analysis: Bulls Break from the Descending Wedge as Developers Patch Up ‘Infinite ZEC’ Bug

  • Zcash jumped a big double-digits in the session on Friday, hitting the highest level in around two weeks.
  • Developers at Zcash managed to patch up a dangerous bug that could have allowed hackers to produce infinite ZEC.

The Zcash (ZEC) price on Friday enjoyed big gains in the session, jumping double-digits thanks to a substantial crypto-market recovery. ZEC/USD managed to push up to its highest levels seen in around two weeks. As a result, the bulls forced the price back into the psychological $50 region, smashing out from a descending wedge pattern formation to the upside.

Zcash Patched Up Infinite Counterfeit Coin Bug

Zcash recently reported of a vulnerability, that could have facilitated an attacker to essentially coin infinite amounts of Zcash (ZEC). The organisation behind Zcash, have been able to successfully patch this potentially very damaging bug. This was confirmed in their recent official blog post, detailing of the vulnerability.

Engineer Ariel Gabizon from Zerocoin Electric Coin Company, the start-up behind Zcash, identified the vulnerability. It was detailed that he discovered this potentially large issue the evening prior to his talk at the Financial Cryptography 2018 conference in March. Upon this finding, Gabizon wasted no time contacting Zcash cryptographer Sean Bowe the very same day.

Zcash were able to keep the discovery very much at hush, as only the small team working to fix the issue knew about it. The members of the team had to use encrypted methods of communication to reduce the risk of possible insider leaks. It was also to prevent hackers finding out the vulnerability.

Within the most recent blog post, Zcash noted, “Eleven months ago we discovered a counterfeiting vulnerability in the cryptography underlying some kinds of zero-knowledge proofs.

“The counterfeiting vulnerability was fixed by the Sapling network upgrade that activated on October 28th, 2018. The vulnerability was specific to counterfeiting and did not affect user privacy in any way. Prior to its remediation, an attacker could have created fake Zcash without being detected. The counterfeiting vulnerability has been fully remediated in Zcash and no action is required by Zcash users.”

Technical Review – ZEC/USD

ZEC/USD daily chart.

As touched upon earlier, the bulls broke out from a descending wedge pattern formation. ZEC/USD had been moving within this formation since the back-end of December. It was a prolonged seven weeks that the price had been confined within the mentioned structure. Playing by the textbook, the upside escape is currently being observed. Eyes are on a potential pullback at some point, keeping in mind the breakout and retest technical theory.

Looking to the upside now given the recent breach, immediate resistance can be observed around the $55 area, which is a near-term supply zone. Further north, sellers are also camped within the $65-$75 region. Lastly, there isn’t then too much in the way of a much back towards the psychological $100 price territory. ZEC/USD last traded up at these heights back on 20th November 2018.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.