As of January 18, 2026, Zcash (ZEC) is trading around the $396–$397 range, extending its recent weakness with a nearly 2.5% drop over the last 24 hours. While the move may look modest on the surface, it reflects a broader shift in sentiment following ZEC’s explosive 2025 rally, where the privacy-focused coin surged more than 800% at its peak.
That momentum has clearly faded in early 2026, and both fundamentals and technicals are now flashing caution signals.
Developer Exodus Shakes Confidence
The biggest overhang for Zcash came earlier this month when the entire core development team at Electric Coin Company (ECC) stepped down. The resignations, which occurred around January 7–8, were linked to governance disputes with the Bootstrap nonprofit board overseeing the project.
Markets reacted swiftly. ZEC sold off sharply from the $480–$500 region, erasing weeks of gains in a matter of days. For a project built around long-term cryptographic research and privacy innovation, uncertainty around leadership and development direction has weighed heavily on investor confidence.
Descending Triangle Takes Shape
From a technical standpoint, Zcash’s daily chart now shows a clear descending triangle, a structure that typically signals bearish continuation after a strong uptrend.
The pattern is defined by:
- •A flat support zone between $300 and $335, which has repeatedly attracted buyers.
- •A series of lower highs, forming a downward-sloping resistance line from the 2025 peak near $750.
As price compresses within this triangle, volatility has steadily declined — often a precursor to a decisive move. Adding to the bearish bias, the 100-day moving average continues to cap upside attempts, acting as dynamic resistance during recent rebounds.
The chart also highlights how the sharp sell-off began almost immediately after the developer resignation news, reinforcing the connection between fundamentals and technical weakness.
What’s Next for ZEC?
If bearish pressure persists, ZEC could gradually slide toward the lower boundary of the triangle, putting the $300–$335 support zone back in focus. A clean breakdown below this area would significantly weaken the structure and could trigger a deeper corrective phase.
On the flip side, bears would lose control if buyers manage to reclaim the 100-day moving average near $430. Such a move would signal renewed demand and could ease concerns tied to the descending triangle, at least in the short term.
Bottom Line
Zcash remains one of the most recognizable privacy-focused cryptocurrencies, but the current setup suggests caution. The combination of developer uncertainty and a bearish chart pattern has shifted momentum firmly in favor of sellers for now.
Until ZEC either breaks down from its descending triangle or reclaims key resistance levels, the token is likely to remain range-bound with a bearish tilt. How price behaves near the $300 support zone will be critical in defining Zcash’s next major move.
For traders and long-term holders alike, patience may be the best strategy as the market waits for clarity — both on the charts and within Zcash’s leadership structure.