This is a digitizer issue . To fix it you will probably have to replace it . The whole screen replacement on this phone is less than $30 So do a full replacement rather than trying to separate the glass .
http://www.ebay.ca/sch/i.html?_from=R40&_trksid=p2050601.m570.l1313.TR0.TRC0.H0.XZTE+Prestige+digitizer.TRS0&_nkw=ZTE+Prestige+digitizer&_sacat=0
This is close to similar was not able to find a tear down on the prestige but this will help
https://www.youtube.com/watch?v=EA7wii8hsUE