Last night, the crypto market exploded—Zcash (ZEC) development team ECC collectively resigned due to governance issues, which should have been a major bearish signal. However, strangely, after the price briefly dropped to 380.85, it was driven back above 435 by large buy orders, with a rebound of over 14%.

What exactly is going on? Why did negative news trigger buying?

First is the psychological "detox" effect. The market views the team’s departure as removing a long-term internal conflict, and some investors even see it as a sign that the negative news has been fully priced in. However, how long this logic can hold remains uncertain.

Even more interesting is the institutional aspect. Bitwise recently submitted an ETF application including ZEC, which gave the market a lot of imagination space. Large institutions’ involvement often indicates they are accumulating in the 380-390 range, which helped prevent the price from falling further.

On the technical side, the increased volume and long lower shadows suggest that big funds are building positions amid chaos, forcing short sellers to cover. But how far this quick rebound can go depends on whether the price can truly stabilize around 440.

Operational advice: don’t chase the high now. Hold onto your low-position chips, and wait for the next correction if you haven't entered the market yet. This rebound looks fierce, but whether it can develop into a genuine upward trend depends on subsequent fundamental performance.