Zcash Corrects 21% Amid Money Laundering Concerns After Explosive Rally

Zcash (ZEC) has experienced a significant correction after surging over 250% in one month. The price of ZEC plummeted by more than 21% following concerns that a portion of funds stolen from Bitget cryptocurrency exchange was laundered through its anonymous transaction feature.

According to crypto-focused media outlet Decrypt, on October 2nd (local time), Zcash traded as low as $1,333.50 intraday, down 7.29% on the day. This represents a decline of approximately 21% from the high of $1,698 recorded late last month. In August, ZEC was trading in the $480 range and had surged past the $1,690 level last month.

The primary reason for the decline is attributed to profit-taking following the short-term surge. Additionally, the Bitget hack on September 24th dampened investor sentiment, with approximately $387 million worth of digital assets stolen from the exchange in that incident.

Blockchain analyst ZachXBT reported that 2,746 Zcash was moved from addresses linked to the Bitget hack into the 'Shielded Pool', Zcash's anonymous transaction feature. At the time, this amount was worth approximately $3.9 million. The Shielded Pool makes it difficult to externally verify the sender, recipient, and transaction amounts.

Technical indicators suggest that the uptrend remains valid. The Relative Strength Index (RSI) has retreated to 50.2, a neutral level, indicating that much of the overbought pressure seen during the surge has been relieved. The 50-day moving average also remains above the 200-day line, sustaining the upward trajectory.