Privacy coin Zcash took a hit this week, dropping over 20% from its high. It is now hovering around $381, hitting a nearly three-week low. The trigger behind this was the sudden resignation of the core development team of Electric Coin Company. Although former CEO Josh Swihart later stated that the team would establish a new company to continue developing privacy technology, this news had little impact on market sentiment.

From a technical perspective, the situation looks even less optimistic. Charts analyzed by analysts indicate that ZEC may continue to decline in the coming weeks, with a potential drop of 40-50%. The current price is testing support near the trendline of the descending channel, which is very similar to the correction in November—after testing, a correction began, and the price fell 58% over the last month.

If this support level is broken, ZEC could likely fall to the $200-250 range, which is close to the 200-day moving average. Additionally, from a technical pattern standpoint, Zcash has broken out of the bear flag pattern, reinforcing the downward trend. Based on the projection of the moving measurements, the $275-300 zone is likely to become the target for the decline in the next few weeks.