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According to Cointelegraph, Zcash (ZEC) experienced a significant drop of over 20% on Thursday, reaching approximately $381, its lowest price in three weeks. This decline followed the unexpected resignation of the core development team from the Electric Coin Company (ECC), which has led to increased market uncertainty. Despite former CEO Josh Swihart's confirmation that the team plans to establish a new company to continue privacy-focused development, the market sentiment remained negative, with analysts predicting further price declines for Zcash.

Technical analysis suggests that Zcash's price could fall another 40-50% in the coming weeks. Analyst Osemka shared a technical setup indicating that ZEC's price correction began after testing the upper trendline of its descending channel pattern. This pattern resembles a pullback from November that resulted in a 58% correction a month later. Additionally, ZEC's price broke below a support confluence, which included a rising trendline and a 20-day exponential moving average (EMA). This break increased the likelihood of ZEC falling towards the lower trendline of the ascending channel, estimated to be in the $200-250 range.

As of Thursday, Zcash was breaking out of its bear flag pattern, further reinforcing the downside bias. Following a sharp sell-off from the $550-580 region, ZEC entered a brief upward-sloping consolidation, characterized by descending resistance typical of a bear flag pattern. If this pattern fully plays out, the measured move points towards the $275-300 zone. This target area aligns closely with the 200-day EMA, making it a probable downside magnet in the upcoming weeks.