Schlagwort: crypto business

Key takeaways

• ZEC is down 45% and is now trading around $309 per coin.
• The vulnerability was fixed within days, and findings suggest that actual exploitation of the bug is unlikely.

Zcash Zcash fell sharply on Friday after researchers disclosed a critical vulnerability in its Orchard shielded transaction pool that could have theoretically enabled the creation of unlimited counterfeit tokens.

The price dropped about 45% to $309 with most of the decline occurring shortly after the security disclosure was made public.

Critical flaw found in Zcash Orchard shielded pool

The vulnerability was identified by security researcher Taylor Hornby during an audit commissioned by Shielded Labs, an independent support organization for the Zcash ecosystem.

According to the report, the issue was located in the Orchard circuit, the zero-knowledge proof system that secures private transactions within Zcash’s shielded pool.

The flaw allowed under-constrained inputs in elliptic curve computations, making it possible to pass invalid values as valid proofs

In a test environment, researchers were able to generate an undetectable counterfeit ZEC. The bug has existed since Orchard’s activation in May 2022. The vulnerability was patched on June 1, shortly after discovery.

Despite the severity of the issue, Shielded Labs said there is no clear evidence that the vulnerability was exploited in the wild.

Reasons cited include: The complexity of Orchard’s privacy system obscures transaction tracing, the bug remained undetected for years despite cryptographic scrutiny, and no confirmed anomalies in supply have been identified

However, the organization acknowledged that absolute certainty is impossible due to the privacy-preserving nature of shielded transactions.

ZEC dips by 45%. Will it recover soon?

The ZEC/USD 4-hour chart is bearish and efficient as Zcash has lost 45% of its value in the last 24 hours.

The momentum indicators have flipped bearish, with the RSI of 33 indicating an oversold condition. The MACD lines are also within the negative territory, adding further confluence to the bearish bias.

sell

If the selloff continues, ZEC could drop below the Friday low of $245 and retest the $200 pychological level.

However, the bounce back above $300 indicates that the selloff could end soon. If the bulls regain control, ZEC could surge towards the first major resistance level at $413, with further hurdles around the $527 zone.

The post Zcash dips 45% after critical orchard pool vulnerability raises counterfeit token risk appeared first on CoinJournal.

Key takeaways

• XLM extends its loss for a fourth straight day as retail sentiment weakens and futures positioning declines. 
• The token remains under bearish technical pressure, but is holding above its 200-day EMA and showing fading momentum. 

Stellar’s XLM extends its declines for a fourth consecutive session on Thursday, as selling pressure intensified across the cross-border payments sector. The token continues to struggle with weakening retail sentiment.

The broader correction highlights fading enthusiasm for remittance-focused crypto assets, which had previously benefited from narrative-driven rallies tied to institutional adoption and real-world asset tokenization themes.

Retail sentiment cools as futures positioning contracts

Recent derivatives data points to a sharp unwind in speculative positioning across both assets.

XLM futures open interest dropped to $260.35 million on Thursday, down significantly from Monday’s peak of $358.78 million, according to CoinGlass. 

The steady decline suggests traders are scaling back bullish bets that had formed around optimism linked to the Depository Trust & Clearing Corporation (DTCC) partnership and asset tokenization narrative.

Stellar holds key support, but momentum weakens

The XLM/USD 4-hour chart is bearish and efficient as Stellar is down 9.5% in the last 24hours. Unlike XRP, Stellar is still maintaining a more constructive technical structure, trading above $0.2110 and holding above its 200-day EMA near $0.1975.

However, short-term momentum is deteriorating. The RSI has cooled sharply from overbought levels to around 44, signaling a growing bearish strength. Meanwhile, the MACD is approaching a potential bearish crossover as upward momentum continues to contract.

Immediate support is anchored at the 200-day EMA, and a breakdown below this level could trigger a deeper correction toward prior consolidation zones.

On the upside, a rebound from current levels could see XLM retest resistance near $0.2579, which previously capped gains in late May.

XLM now sits at a technical crossroads, with weakening derivatives positioning and fading retail enthusiasm weighing on sentiment.

The current market conditions remain bearish as macroeconomic conditions suggest that the ongoing selloff could continue in the near to medium term.

The post XLM extends losses as weak retail demand weighs on sentiment appeared first on CoinJournal.

Hyperliquid’s native token, HYPE, dropped below $70 on Thursday after delivering an 80% gain in May. The dip comes amid renewed weakness across the broader cryptocurrency market, where Bitcoin (BTC) slipped below $63,000 and sparked a wave of risk-off sentiment among investors.

A key catalyst behind HYPE’s recent surge has been rising institutional participation. Newly launched HYPE-focused exchange-traded funds (ETFs) attracted roughly $135 million in inflows last month, highlighting growing demand from professional investors and helping drive the token into price discovery territory.

While momentum remains firmly bullish, analysts caution that the rally has become increasingly stretched, even as long-term projections point toward a potential move above the $100 mark.

Capital rotates from Bitcoin ETFs to Hyperliquid products

Institutional flows reveal a stark contrast between Bitcoin and Hyperliquid investment products.

Bitcoin ETFs recorded $396.6 million in net outflows on Wednesday, extending cumulative withdrawals to $4.37 billion over the past 13 trading days. The trend suggests waning institutional appetite for the world’s largest cryptocurrency amid broader market uncertainty.

By comparison, HYPE-focused ETFs attracted $2.99 million in inflows on Wednesday, marking their 15th consecutive day of positive flows and bringing total inflows to approximately $140 million.

The data points to a broader rotation of capital toward exchange-related tokens, as investors increasingly focus on platforms generating tangible revenue and expanding their product ecosystems.

Further reinforcing this trend is the launch of Grayscale’s HYPE-focused ETF on Thursday, a development widely viewed as another sign of growing institutional confidence in the Hyperliquid ecosystem.

Hyperliquid’s growth story extends beyond ETF demand. According to Hyperscreener data, the platform’s HIP-3 protocol—which enables 24/7 trading of tokenized real-world assets (RWAs), including publicly listed stocks, pre-IPO shares, and commodity perpetual futures—generated $62.63 billion in trading volume during May.

The milestone marks the third consecutive month in which HIP-3 volume exceeded $60 billion, underscoring the platform’s expanding role as an “everything exchange” serving multiple asset classes.

HYPE price outlook: Can HYPE reach $100?

HYPE traded above $67 at the time of writing, extending a rally that has now lasted five consecutive weeks.

Technical indicators continue to support a bullish outlook, although they also suggest the token may be approaching overheated conditions. The Relative Strength Index (RSI) sits at 82 on the weekly chart, deep in overbought territory, while the Moving Average Convergence Divergence (MACD) indicator remains firmly positive with expanding bullish momentum.

From a technical perspective, HYPE is approaching the 127.2% Fibonacci extension level at $79.40. A decisive weekly close above this resistance could pave the way for a move beyond the psychologically important $100 threshold.

Should bullish momentum continue, the next major upside target sits near the 161.8% Fibonacci extension level at $114.75, which also aligns with a long-term overhead trendline.

Despite the strong uptrend, investors should remain aware of potential downside risks. The first significant support level lies near $59.45, which previously acted as a major Fibonacci high. If selling pressure intensifies, additional support could emerge around the 78.6% Fibonacci retracement level at $47.34.

For now, sustained institutional inflows, growing trading activity, and expanding product offerings continue to support the bullish case for Hyperliquid as it attempts to establish itself as one of the crypto market’s strongest-performing assets.

The post Hyperliuid dips below $70, but institutional demand remains high appeared first on CoinJournal.