Zcash core team suddenly resigns controversy, ZEC plummets over 20%, technical indicators show further warning signs

2026-01-12 20:08:09

According to Cointelegraph reports, Zcash (ZEC) has suffered a heavy blow, with its price dropping by double digits, falling to around $381 at one point, marking the lowest point in nearly three weeks. This decline was triggered by market concerns over personnel changes within the Electric Coin Company (ECC) development team.

Team Changes Trigger Confidence Crisis

ECC’s former CEO Josh Swihart stated that the team would establish a new company to continue privacy development work, but this move did not stabilize market expectations. Investors felt uneasy about the dispersion of core development resources, leading to selling pressure. As a mainstream coin emphasizing privacy features, the stability of the development team directly impacts its ecosystem confidence. This personnel shake-up has undoubtedly planted a time bomb for the market.

Technical Indicators Signal Further Adjustment Space

Analyst Osemka’s technical chart analysis indicates that ZEC’s current price is touching the trendline at the lower boundary of the downtrend channel, a signal highly similar to the correction pattern seen in November. At that time, a correction lasting about a month resulted in a decline of up to 58%. Based on this historical pattern, Zcash could face a further 40-50% drop in the coming weeks.

If ZEC breaks through a key support level, the price could slide to the $200-$250 range, which aligns closely with the 200-day moving average and could serve as a short-term bottom. This Thursday, ZEC broke out of the bear flag pattern, further strengthening the downward trend. Technical measurements point to $275-$300, a level that coincides with long-term moving averages, likely becoming the main downside target in the upcoming weeks.

Current Data Overview

As of the latest data, ZEC is trading at $412.04, with a 24-hour increase of +5.59%. Despite a short-term rebound, investors should remain cautious of systemic risks in the broader market, especially given that the team resignation events have not been fully absorbed.

ZEC-1,71%

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