Zcash Price Drops 4% After Developers Announce New cashZ Wallet; Can ZEC Rally Back to $750 in Q1?

Zcash price is down 4% in the last 24 hours, to trade at $432, after its developers revealed plans to launch a new wallet, cashZ, just one day after exiting Electric Coin Company (ECC).

The new wallet will be based on the same code as the current Zashi wallet and is expected to launch in a few weeks. Users will be able to move from Zashi to cashZ easily.

Former ECC CEO Josh Swihart said the same team that created Zcash and the Zashi wallet is now working on this new project. He assured users that they are not creating a new coin. Their only goal is to improve and grow Zcash.

The team left ECC after disagreements about nonprofit rules and how the organization is run. Swihart said Zcash was built on cypherpunk values, which support privacy and freedom. He believes that a private company can move faster and protect these values more effectively than a nonprofit.

He also said that privacy in crypto should be the norm, just like using cash in real life. To defend this, the team needs an organization that can act quickly without too much bureaucracy. According to him, mixing nonprofits and tech startups often causes problems in the crypto space.

Developer Split Shakes Market

Another reason for the split is that Zcash has grown over the past two years. Swihart said the project is no longer small and needs a stronger structure to compete with big blockchains like Bitcoin, Ethereum, and Solana.

So far, more than 3,800 people have signed up for the new cashZ wallet. Zcash’s price dropped after the news of the team’s exit. The token fell more than 21%, going below $400.

After the wallet announcement, the price recovered slightly to around $430. However, ZEC is still far below its past highs. It is down 86% from its 2016 peak and 38% from its 2025 high.

Zcash Price Eyes $500 Resistance After Market Stabilizes

Zcash (ZEC) is starting to show signs of a possible price recovery on the daily chart. After reaching a high of $750 in November, the price dropped sharply and found strong support around the $260–$280 zone. Buyers stepped in at this level, stopping the decline.

Since then, ZEC has been slowly moving upward in a curved, rounded shape. This kind of price movement often signals a bullish reversal, meaning the market could be preparing for an upward trend. The price is now trading around $430, which is an important level for both buyers and sellers.

The next key resistance area is between $500 and $520. This zone previously acted as support and later turned into resistance. If ZEC breaks above this level and holds, the price could move toward $600 and possibly even retest the earlier highs near $700.

ZECUSD Chart Analysis By Tradingview

On the downside, the main support is between $380 and $400. As long as the price stays above this area, the bullish structure remains intact. If ZEC falls below $380, the recovery could weaken, with the next support near $320.

The RSI indicator is sitting around the middle range, showing that the market is neither overbought nor oversold. This means there is still room for the price to move higher without strong selling pressure.

Trading volume has been steady during the recent sideways movement. This often happens before a big price move. A strong increase in volume during a breakout above $500 could start a stronger upward move. Until then, the market remains in a cautious but improving position.