Zcash experienced a significant market downturn on Thursday, with the price of ZEC sliding more than 20% to…

Lede

Zcash experienced a significant market downturn on Thursday, with the price of ZEC sliding more than 20% to approximately $381. This movement marks the weakest price level for the privacy-focused cryptocurrency in three weeks. The decline follows news that the core development team has resigned from the Electric Coin Company (ECC), a move that has introduced significant fundamental uncertainty into the project’s ecosystem. Technical indicators and current market catalysts suggest that the price of ZEC could continue to decline, with some projections placing the asset as low as $200 in the coming weeks.

The resignation comes at a time when the market is closely watching the project’s leadership and its future development path. Former CEO Josh Swihart has confirmed that the exiting team intends to form a new company to continue their work on privacy-focused development. However, this confirmation did not immediately stabilize market sentiment, as the exit of the primary developers from the project’s main entity remains a central concern for investors and stakeholders alike. The sudden nature of these exits has shifted the short-term outlook toward a more bearish trajectory, prompting analysts to predict further declines ahead. This fundamental uncertainty surrounding the ECC keeps potential rallies vulnerable to selling pressure as the community digests the implications of the core team’s departure.

Context

The recent developments at the Electric Coin Company represent a pivotal shift for the Zcash ecosystem. The resignation of the core development team was confirmed alongside statements from former CEO Josh Swihart, who provided clarity on the future direction of the individuals involved. Swihart noted that the team plans to establish a new entity to maintain their focus on privacy-centric development, though the immediate transition has caused significant ripples across the market.

This fundamental shakeup arrives after a period where Zcash had shown notable recovery strength. Specifically, a rising trendline had supported an 85% recovery move over the past month, suggesting a period of bullish momentum that has now been interrupted. Additionally, the 20-day exponential moving average (EMA) had historically acted as a significant technical marker for the asset. This specific moving average previously capped downside attempts during a substantial rally of over 1,000% that occurred in late 2025. The current breakdown below these established support levels suggests a significant reversal of recent gains. The exit of the core team from the ECC has created a vacuum that the market is currently pricing in, leading to the sharp correction observed on Thursday. This transition away from the ECC by the primary development force introduces questions regarding the long-term management of the Zcash protocol and its technical roadmap as it moves into a new phase of development under a separate company.

Impact

The price correction for ZEC intensified as it tested the upper trendline of its prevailing descending channel pattern. This technical setup mirrors a previous correction observed in November, which eventually resulted in a 58% decline one month later. On Thursday, Zcash was also observed breaking out of its prevailing bear flag pattern, a development that typically reinforces a downward bias in price action. This bear flag formed after a sharp sell-off from the $550–$580 region, leading into a brief period of upward-sloping consolidation capped by descending resistance.

The breakdown from this pattern has led to specific downside projections, with technical analysis suggesting the price could fall another 40-50% in the coming weeks. The measured move of the bear flag pattern specifically points toward a target zone between $275 and $300. This area is considered a likely magnet for price action if the current technical pattern plays out in full. Simultaneously, ZEC’s price broke below a support confluence comprising a rising trendline and a 20-day exponential moving average. Breaking below this confluence has raised the odds of ZEC falling toward the lower trendline of the descending channel. The loss of these key technical markers, which had previously supported significant recovery moves, underscores the strength of the current selling pressure. These patterns often resolve with lower valuations when accompanied by fundamental shifts such as the ECC team resignation.

Outlook

Looking ahead, the outlook for ZEC remains bearish as technical indicators point toward lower support levels. Analysts have identified a primary downside target range between $200 and $300 based on current chart technicals and the resolution of the bear flag pattern. More specifically, the break below key support confluence has raised the odds of ZEC falling toward the lower trendline of its prevailing channel, which is situated roughly in the $200 to $250 area.

The $275 to $300 zone is also highlighted as a critical area for potential stabilization, as it aligns with the 200-day EMA, making it a likely target for the asset in the weeks ahead. If the current momentum persists and the bearish technical setup plays out fully, the price of ZEC may continue its downward trajectory to test these deeper support zones. The market’s reaction to the formation of the new development company led by the former core team will likely be a significant factor in determining if the asset can find a bottom before reaching these targets. For now, the combination of fundamental uncertainty regarding the ECC and the technical breakdown from the bear flag and descending channel patterns suggests that the path of least resistance for Zcash remains to the downside. With the price having already reached its weakest level in three weeks, the focus remains on whether ZEC can maintain any footing or if it will face the full 40-50% decline predicted by current models.