The price of Zcash slipped for the 8th consecutive day, going down around 40% in the period. At the time of writing, Zcash was trading at $245, and the price of the token is 53% lower than in the last month and around 65% lower than its November high, which hit $699.
Mainly, there are three significant reasons why the price of Zcash fell this week. Initially, Zcash stumbled upon a broader crypto risk-off phase where BTC, the bellwether asset, dropped towards the $70,000 psychological support, setting more than $1.6 billion in liquidations over the market.
ZEC didn’t perform well at this sell-off in tandem, having the major portion of the top privacy coins, like Monero, Dash and Horizen, which went through double-digit losses in one week as the hype surrounding privacy solutions dissolved.
After this, the confidence of investors in Zcash becomes fragile after the mass resignation of the Electric Coin Company’s main development team at the start of January. As the development team has confirmed its commitment to back Zcash.
This quick change has made a projection of unpredictability concerning the future roadmap of the protocol. The last reason is attributed to prolonged global scrutiny of privacy coins, comprising proposed bans in some jurisdictions such as Russia and escalated AML checks in India, which carries on to weigh on investor sentiment for assets such as ZEC and Monero.
The Clampdown
The recent clampdown comes from the financial regulator of Dubai, which lately put a ban on the use of Zcash on all licensed crypto exchanges and financial institutions working within the Dubai International Financial Centre.
The daily chart shows that the price of Zcash is near to a breakdown from a descending line that has been acting as a prominent support level where bulls have mostly entered to defend the price.
A fall below this level would indicate that sellers have captured control of the market and, at the same time, bulls are giving the signs of exhaustion.
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